The move to liquidate requires approval by the bankruptcy judge. The Weinstein Co. has been negotiating for more than a year with insurers, creditors and women who have sued for compensation for abuse, and the filing could be legal maneuvering intended to speed up a resolution.
The filing said efforts to resolve legal claims by some of the women had stalled in recent months, putting more strain on dwindling resources. But lawyers for some of the women and the New York attorney general’s office painted a more optimistic picture of the mediation process, according to a separate bankruptcy filing on Wednesday.
“The parties are literally days away from receiving a proposed global resolution,” the lawyers said in the filing, adding that the settlement would include “remuneration for Harvey Weinstein’s victims.”
The women’s lawyers and the attorney general’s office did not weigh in on the merits of the liquidation request in their filing, but they objected to the Weinstein Co.’s proposal to hire a special litigation firm that would take 30 per cent of the proceeds of any settlement.
The filing said introducing a litigator into the mediation process could scuttle the talks, which started in April 2018.
It’s not clear how much would be left to liquidate. The assets sold to Lantern included a library of old films, a small television production business and a handful of unreleased new films. Lantern offered $US310 million ($447 million) plus the assumption of about $US115 million in debt.
The Weinstein Co. said in the filing on Tuesday that Lantern had agreed to close the deal only after the price was reduced by $US23 million.
The New York Times