Weinstein bankruptcy case: These celebrities, charities and studios are owed money

Weinstein Company, Harvey Weinstein’s former company, announced plans to file for bankruptcy protection on Monday night.

On Tuesday, a 394-page list was revealed, which listed the creditors to whom the company owes money.

Deadline reported the list includes many notable actors and directors who produced works for Weinstein Co.

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Some of the thousands of names on the list of people owed money by the bankrupt company include David Bowie, Michael Bay, Malia Obama, Ryan Coogler, Daniel Radcliffe, Robert De Niro, Seth Rogen, Heidi Klum, Jennifer Lawrence and Darlene Love. It also included frequent Weinstein collaborators Quentin Tarantino and Kevin Smith.

The amount that the Weinstein Co. owes the celebrities is not specified in the letter. The company’s bankruptcy filings list between US$500,000,001 and US$1 billion in liabilities and the same range for assets.

Other eye-catching names include the New York Fire Department, The Los Angeles Police Department, Netflix, Amazon Studios, CBS, NBC, and ABC.

The company also owes money to charities, such as the American Fund for AIDS Research, Autism Speaks and the American Cancer Society.

The company filed for Chapter 11 bankruptcy protection on Monday night, and a federal bankruptcy judge in Delaware on Tuesday issued the initial orders allowing the Weinstein Co. to continue paying its bills and working toward a sale of substantially all of its assets.

READ MORE: Weinstein Company expected to file for bankruptcy after sale talks collapse

Judge Mary Walrath’s rulings include interim approval for the company to borrow up to US$25 million to see it through bankruptcy, but only after she expressed concern about the loan terms in the face of a competing financing proposal.

After lengthy arguments by lawyers, Union Bank, the Weinstein Co.’s major existing lender and primary secured creditor, agreed to reduce the amount of upfront fees it was seeking to provide bankruptcy financing.

Robert Del Genio, a consultant serving as chief restructuring officer for the Weinstein Co., testified that the time constraints the company is facing and the loan certainty offered by Union Bank were key factors in accepting its financing offer, which includes an initial draw of US$7.5 million.

“This company has been liquidity-constrained for quite some time,” said Del Genio. “As of last night, we had US$218,000 of cash.”

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Lantern Capital Partners, a Dallas-based private equity firm, has offered US$310 million in cash for the Weinstein Co.’s assets. It also has agreed to assume about US$125 million in project-related debt and to cover obligations related to the assumption of certain contracts and leases.

The company’s primary assets are a lucrative 277-film library, a television production business, and an unreleased film portfolio that includes four distribution-ready films and other projects in various stages of development.

As the lead, or “stalking horse” bidder, Lantern is entitled to a breakup fee of US$9.3 million and expense reimbursement of up to US$6.2 million if the Weinstein Co. accepts another bid, which would have to be at least US$1 million more than the combined amount of Lantern’s offer and bid protections.

READ MORE: Weinstein Company expected to file for bankruptcy after sale talks collapse

Judge Walrath scheduled an April 6 hearing on the proposed bid procedures, which propose a May 2 auction if there is more than one qualified bidder. Meanwhile, a March 28 meeting is scheduled regarding the appointment of an official committee of unsecured creditors.

The movie and TV studio is the first high-profile company to be forced into bankruptcy protection amid the nationwide outcry over workplace sexual misconduct. Dozens of prominent men in entertainment, media, finance, politics and other fields have seen their careers derailed, and scores of women, including prominent actresses, have accused Harvey Weinstein of misconduct ranging from rape to harassment.

Weinstein, who was fired as his company’s CEO in October, has denied any allegations of nonconsensual sex.

—With files from the Associated Press

© 2018 Global News, a division of Corus Entertainment Inc.

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