Weinstein company bought by private equity firm Lantern Capital
A private equity firm called Lantern Capital has been chosen as the winning bidder in the sale of the bankrupt Weinstein Company.
The bidding war for the company has been shrouded in controversy since news of sexual misconduct allegations around Hollywood producer Harvey Weinstein broke earlier this year.
It follows Dallas firm Lantern making a “stalking horse” bid for the company in March, of $310m cash and $115m for studio project liabilities.
Read more: Weinstein Company files for bankruptcy – opening the door to future claims
A statement on Tuesday night from the Weinstein Company explained that no other bid had offered “as much value to the estate” than Lantern’s.
Ivona Smith, a member of the Weinstein Company’s board said: “We look forward to working with Lantern to close the transaction.”
A separate offer from an investor group backed by Ron Burkle and Len Blavatnik fell through in MArch, as the pair learned of undisclosed company liabilities.
Lantern’s bid also beat out an expression of interest by Broadway producer Howard Kagan.
Sales of the company’s assets still need to be approved by a federal court, as the group has filed for Chapter 11 bankruptcy.
On Tuesday, the lawyer who filed a lawsuit on behalf of the Weinstein Company’s staff Eric Schneiderman urged the potential buyers to set aside money to compensate Havery Weinstein’s victims.
“Bidders should propose bid enhancements that set aside financial resources to compensate and provide support services for injured employees and industry talent,” he said in a letter.
“Bid enhancements also should include non-monetary terms that protect future employees and contractors and avoid rewarding wrongdoers.”