Confirms deal to sell assets to Maria Contreras-Sweet's investor group

A former Obama administration official is trying to provide an answer after reaching a deal to buy the Weinstein Company's assets, Reuters reports.

It was the latest dramatic twist in a long-running saga over the future of the New York-headquartered film studio, which has floundered on the brink of bankruptcy since Weinstein was hit by bombshell allegations, torpedoing his career last October.

As the sale agreement was announced, Schneiderman released a statement saying the new owners have committed to "a well-funded victims compensation fund" and to implementing "HR policies that will protect all employees, and will not unjustly reward bad actors". "We will work with the parties in the weeks ahead to ensure that the parties honor and memorialize these commitments prior to closing".

The Weinstein Co. fired Glasser two weeks ago, and the source said Thursday's agreement also has him officially out of the new company.

The fund in the latest deal was increased to around $90 million, sources said.

Read: The Weinstein Company Wants to Sell. "We consider this to be a positive outcome under what have been incredibly hard circumstances".

The next chapter of The Weinstein Company's legacy will likely now be a name change.

The A.G. also said that his lawsuit "remains active and investigation remains ongoing at this time". Weinstein denies ever engaging in non-consensual sex.

The Weinstein Company had previously been close to sealing a deal with the Contreras-Sweet group last month when New York's attorney general Eric Schneiderman launched last-minute legal action and imposed various principles on any sale going forward.

Maria Contreras-Sweet announced the deal behalf of her group earlier in the day, stating they will create from the studio's architecture a female-led movie studio whose board of directors will be a majority of women.

But Schneiderman got what he wanted - including the ouster of Weinstein Co.

At the time Contreras-Sweet issued her statement, a fleet of lawyers for both sides were still hammering out the final details.

The unexpected development comes only a few days after TWC said it had no choice but to file for bankruptcy after talks to sell its assets to Contreras-Sweet's investor group collapsed. A chief point of contention was interim funding needed to keep the company afloat during the process, which could take 30 to 40 days, according to insiders.

The buyers would pay $220-million for most of the Weinstein Co. assets and assume about $225-million of the studio's debt. She added that the deal should also save around 150 jobs and protect the small businesses that are owed money.

With those assets, the investors will form a new company, essentially wiping away the stain from the Harvey Weinstein abuse scandal that shook Hollywood last fall.

"This next step represents the best possible pathway to support victims and protect employees", Contreras-Sweet said.

According to a spokesman for the investor group, most of the employees who remain at Weinstein Co. will be offered positions with the new company.


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