The $500-million deal for an investor group to acquire Harvey Weinstein's former movie and TV studio has collapsed yet again.
It has been reported that sources close to the investor group, led by former Obama administration official Maria Contreras-Sweet stated that they found at least $50 million in undisclosed liabilities on the New York company's books.
Maria Contreras-Sweet, a former head of the Small Business Administration, leading the investment group, asserted, “All of us have worked in earnest on the transaction to purchase the assets of the Weinstein Company. However, after signing and entering into the confirmatory diligence phase, we have received disappointing information about the viability of completing this transaction,” and added, “As a result, we have decided to terminate this transaction.”
Weinstein Co.'s board, however, stated, that they have been “transparent” about their “dire financial condition” and had acted in “good faith” in hopes that a deal could be reached. The statement said, “We regret being correct that this buyer simply had no intention of following through on its promises.”
The latest development increases the likelihood that Weinstein Co., founded in 2005, will file for bankruptcy protection in a matter of days.
