Weinstein company files for bankruptcy over sexual abuse scandal

Harvey Weinstein's former production company announced late Monday it had filed for bankruptcy, less than six months after the Hollywood mogul was beset by avalanching sexual assault allegations.

The studio also said it was immediately releasing accusers from non-disclosure agreements which Weinstein had used to silence them, allowing women to speak up without fear of retaliation.

"Even as the company heads into bankruptcy, the company remains committed to doing whatever it can to maximize value for its creditors and... continue its pursuit of justice for any victims," it said.

The company added that it "cannot undo the damage Harvey Weinstein caused, but hopes that today's events will mark a new beginning."

It announced a "stalking-horse" agreement -- an initial bid on a bankrupt company's assets from an interested buyer -- with the affiliate of a Texas-based private equity firm.

Lantern Capital Partners will purchase assets -- subject to conditions and approval from a bankruptcy court in Delaware, it said.

Weinstein's brother and company chairman Robert said the board was "pleased to have a plan for maximizing the value of its assets, preserving as many jobs as possible and pursuing justice for any victims."

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Lantern co-founders Andy Mitchell and Milos Brajovic said they intended "to reposition the business as a pre-eminent content provider, while cultivating a positive presence in the industry."

Monday's announcement came two weeks after an investor group led by Maria Contreras-Sweet, a former Obama administration official, abandoned a reported $500 million deal to buy assets of the studio.

As that deal collapsed, The Weinstein Company's board of directors said they would pursue "an orderly bankruptcy process" while working to see if there were other viable options.

The New York-headquartered film studio had teetered on the brink of bankruptcy since Weinstein's career went down in flames last October.

In February, New York state Attorney General Eric Schneiderman sued The Weinstein Company, fearing that imminent sale could leave victims of the mogul's alleged sexual misconduct without adequate redress.

(Source: AFP)

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