Expect to hear more accusations against Harvey Weinstein in the coming days, because The Weinstein Company just dissolved all of their non-disclosure agreements as part of their bankruptcy proceedings. In a statement released late Monday, members of the board — including Harvey’s brother Bob Weinstein — said the end of all confidentiality agreements is “an important step toward justice for any victims who have been silenced by Harvey Weinstein.”
Dissolution of the non-disclosure agreements — including ones signed by current and former Weinstein Company employees — had been requested by New York Attorney General Eric T. Schneiderman, who is suing Harvey Weinstein and the company for allegedly violating the state’s anti-discrimination laws. Harvey Weinstein is also being sued by twelve other plaintiffs in the U.S., Canada, and England, including a lawsuit filed against him by his own insurance company.
The Weinstein Company — which previously tried to sell off the company but came up short — filed for Chapter 11 protection in Delaware on Monday, and they are entering a “stalking horse” agreement to sell the company’s assets (including Project Runway and over 700 Miramax movies) to Dallas-based Lantern Capital Partners. A stalking horse agreement places a lower limit on the price of the assets, preventing low-ball bids from other potential buyers.
Variety reports Lantern’s bid is somewhere between $300 million and $450 million, significantly less than a previous $500 million bid which fell through when bidders discovered the company had an extra $56 million in debt on top of the $225 million in debt they knew about. There may not be much left to divvy up among plaintiffs after the sale, but at least they’re more likely to get money from the sale than Harvey is. Equity holders — including Harvey and Bob Weinstein — are not expected to get back any money they currently have invested in the company.
Here is The Weinstein Company’s full statement: