Weinstein Company to file for bankruptcy

London: As the sell-over deal of 500 million USD fell through, Weinstein Co. recently announced that it would file for bankruptcy soon.

According to American media, the deal collapsed when the bid group refused to front the cash immediately in order to keep the company afloat.

Weinstein’s board released a letter on Sunday evening informing the members of bid group – Ron Burkle and Maria Contreras-Sweet – about the calling off of negotiations.

According to the letter, the bid group refused to provide the adequate financing, despite the dire need of operating cash being made clear.

The whole deal was close to being reached when New York Attorney General, Eric Schneiderman, filed a suit accusing the company of enabling the sexual abuse by Harvey Weinstein and cornering the abuse victims.

Schneiderman also questioned the investor’s plan to appoint David Glasser, the COO under Harvey Weinstein, as the new CEO. (ANI)