As the financial future of the Weinstein Company remains uncertain and ex-co-chair Harvey Weinstein is under multiple police investigations for alleged sexual assaults, today the disgraced producer and the company he co-founded were hit with a lawsuit demanding repayment of a $45 million loan.
The legal action by AI International Holdings seeks the big bucks repayment of a loan they made to TWC back in September of last year, according to documents filed in New York Supreme Court. After having attempted to gain repayment outside of the courts earlier this year, AI resorted to today’s move in an attempt to gain some leverage in the event the struggling TWC is either sold or shuttered.
“The lender brings this action to enforce its contractual right to immediate repayment of the full outstanding balance of the loan plus accrued interest and expenses,” says AI’s Quinn Emanuel Urquhart & Sullivan LLP lawyers against TWC, Harvey Weinstein and the loan out company TWC Borrower 2016, LLC. (read it here). Specifically, today’s filing by the unit of Len Blavatnik’s Access emphasizes an element of the 2016 loan agreement that places TWC in default if an “occurrence of a Material Adverse Change” happens. Blavatnik has of course come thorough with dough for the Weinsteins before, such as in 2010.
As sexual harassments and sexual assault allegations have been made against Harvey Weinstein since the October 5th expose by the New York Times and others subsequently, AI now argues that the change as laid out in their agreement with TWC has occurred. Weinstein was terminated by the remaining TWC board members, including his brother, Bob Weinstein, on October 8th. The producer formally resigned from the TWC board on October 17th and has entered into talks about his formal status with the company of which he still owns 23 percent.
“Weinstein’s termination and the facts and circumstances leading to and surrounding that dismissal” says today’s filing, “constitute a Material Adverse Change as defined in the Note.” The 17-page complaint goes on to say that “Weinstein’s termination and the events leading to and surrounding that termination have left the business of Weinstein Holdco and its affiliates in shambles.” As potential injections of cash for TWC flounder and a legal move to keep the lights on looks increasingly likely, the AI document also says that “the alleged activities leading to Weinstein’s termination have put Weinstein Holdco’s finances, and indeed its very existence, at severe risk.”
Currently, TWC owes Blavatnik’s AI $43.5 million out of this loan. The complaint in NY Superior Court is also seeking fees and interest of about $481,000 and growing. Reps for Harvey Weinstein and TWC did not respond to requests for comment by Deadline.
Harvey Weinstein has himself sued The Weinstein Company – to both help himself and them, he claims. Help that TWC aren’t exactly welcoming.
In a filing in Delaware earlier this month, the disgraced producer sought to quickly obtain copies of his complete personal TWC employment file and all correspondence, including his company email. Weinstein wants the material for his own defense against being fired, fighting current and possible forthcoming legal action against himself and TWC, and to make sure his stock in the company isn’t hurt if they make “unjustified settlements.”
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