ENTERTAINMENT
02/03/2018 12:22 GMT | Updated 02/03/2018 13:30 GMT

The Weinstein Company Avoids Bankruptcy With Last-Minute $500 Million Sale

The investors are set to appoint a "majority female" board in due course.

The Weinstein Company (TWC) has avoided bankruptcy with a last-minute $500 million sale of the company.

Maria Contreras-Sweet, a businesswoman who was formerly part of Barack Obama’s administration, is leading the investment group buying the company, and intends to appoint a “majority female” board when the sale has been formalised.

The $500m being handed over includes an $80m compensation fund, and grants the investor group ownership of all the company’s assets, including its 277 films.

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Maria Contreras-Sweet is leading the investors 

The company will be renamed in due course and one of the stipulations of the sale is that Harvey Weinstein will not profit from it, according to the BBC.

In a statement issued on Friday (2 March), Contreras-Sweet said: “I have had a long-standing commitment to fostering women ownership in business.

“This potential deal is an important step to that end. The cornerstone of our plan has been to launch a new company that represents the best practices in corporate governance and transparency.”

In a statement issued to the BBC, TWC added: “The deal provides a clear path for compensation for victims and protects the jobs of our employees.

“We consider this to be a positive outcome under what have been incredibly difficult circumstances.”

Contreras-Sweet said her involvement was inspired to hire a majority-female board of directors by the #MeToo movement, which emerged in the wake of the Weinstein allegations.

Andrew Kelly / Reuters
Harvey Weinstein 

“I have had a long-standing commitment to fostering women ownership in business,” she said. “This potential deal is an important step to that end. The cornerstone of our plan has been to launch a new company that represents the best practices in corporate governance and transparency.”

The move comes just days after TWC stated their intentions to file for bankruptcy, following the collapse of  the sale. 

The Weinstein Company has been in dire straits since sexual assault, abuse and misconduct allegations against co-founder Harvey Weinstein first emerged in October 2017.

Harvey resigned from the board with immediate effect and in the months that followed, over 50 women have come forward with allegations about the film producer. He has denied all allegations of “non-consensual sex”.