(Credit: AP/Andy Kropa)
As Hollywood mogul and accused rapist Harvey Weinstein heads to an undisclosed rehab center for his “sex addiction,” the future of his company is up in the air.
The Weinstein company’s remaining leadership is mulling whether or not to reorganize in the face of a possible bankruptcy, according to Variety. Some members want the company to be sold. Notwithstanding the massive liabilities faced by the company in the event of possible lawsuits, board members are also rightly concerned that the sheen of The Weinstein Company has been quite diminished:
Industry sources said given the fact that the Weinstein Co.’s ability to move forward with new projects has significantly diminished in the past week, since sexual harassment allegations against Harvey were detailed by the New York Times and the New Yorker, the banks behind the $400 million senior credit facility that TWC lined up last year are surely getting antsy. Those lenders include Union Bank and Irvine-based Opus Bank. Sources said it would not be a surprise for the senior lenders to ask for a trustee to be appointed to begin the reorganization process.
A banker told Variety that the company was “in complete turmoil.” And part …read more
Source:: Salon – Entertainment