The Weinstein Co.’s A Hot Property In Bankruptcy Court, Attracting 60 Potential Bidders

The Weinstein Company

The Weinstein Co., which tumbled into bankruptcy after failing to close an eleventh-hour sale to rescue the troubled company, is suddenly a hot property on the auction block.

An attorney representing the studio told the U.S. bankruptcy court judge today that some 60 potential buyers have emerged for the Weinstein Co.’s film and television assets, 48 of whom already have inspected the company’s books in a data room ahead of the court’s April 30 auction deadline.

The Weinstein Co. is responding to information requests, the attorney said, even as it works closely with stalking horse bidder, Lantern Capital, to ensure a smooth transition should the Dallas based firm emerge with the studio’s assets.

Jennifer Hagle, an attorney representing Union Bank, which agreed to provide debtor-in-possession financing to The Weinstein Co., described the once-storied studio’s current precarious financial situation. The company lacks the resources to fund production costs for television or film projects, she told the court, and “generates no steady revenue.”

The proposed $25 million loan would maintain The Weinstein Co.’s operations through July, essential bridge financing, Hagle said, “given the nature of the company’s limited operations and the extent they pushed liquidity as far as they could.

Hagle added “it’s critical” the auction proceeds as scheduled in May 4.

The Weinstein Co. did see a windfall — a $9.5 million payment from Anchor Bay Entertainment — which the company hopes to reserve for the benefit of its unsecured creditors, which would include the women who’ve accused co-founder Harvey Weinstein of sexual assault and harassment.

Judge Mary F. Walrath approved the debtor-in-possession financing arrangement.

The judge scheduled a hearing for April 27 to hear arguments in a request for an injunction to bar Hotel Mumbai’s sale as part of the Weinstein Co.’s assets.

The film’s backers say they rescinded their distribution and marketing agreement with The Weinstein Co. in February, following damaging news accounts of co-founder Harvey Weinstein’s sexual misconduct and a subsequent lawsuit alleging a corporate cover-up.

Nonetheless, the Weinstein Co. included Hotel Mumbai as a “top unreleased picture” to be sold to the stalking horse bidder, Lantern Capital, in its March bankruptcy filing. The film’s backers are asking the bankruptcy court judge in Delaware to rule that Hotel Mumbai was erroneously included among the Weinstein Co.’s assets — a determination that would free it to get another domestic distributor.

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