By Jonathan Randles and Peg Brickley
March 21, 2018 5:30 a.m. ET
An attempt to quickly sell Weinstein Co. assets in bankruptcy is facing pushback over how lawsuits pending against the company will be handled.
The troubled TV and film studio filed for chapter 11 protection late Monday in Delaware with a deal in hand to sell its assets to investment firm Lantern Capital for $310 million, subject to better offers in a potential bankruptcy auction. Weinstein Co. advisers want a judge to approve a sale by May 4, court papers say.
A lawyer who represents a group of women who have sued the entertainment company over sexual assaults and sexual harassment allegedly committed by co-founder Harvey Weinstein said the process proposed by Lantern and Weinstein Co. won’t provide for “a proper evaluation” of the studio or a determination of whether the sale is in the best interest of creditors. That includes those with pending suits against the company.
“There is nothing in these sale documents that purports to provide any fund or compensation for the victims,”
“Potentially, it opens the floodgates of information,” said Jeff Herman, a lawyer who is representing actress Kadian Noble and Dominique Huett in sexual assault and harassment complaints pending against the studio, Harvey Weinstein, and his brother and company chairman Bob Weinstein.