The Weinstein Company (TWC) is set to file for bankruptcy “in the coming days”, according to reports.
The New York Times has reported that a deal to sell TWC to a group of investors headed by Maria Contreras-Sweet started to collapse earlier this month after New York District Attorney Eric Schneiderman’s office filed a suit against the studio.
According to the Times, in a letter sent to Contreras-Sweet and backer Ron Burkle, TWC claimed the investor group failed to provide the interim funding needed to sustain the company as it changed hands.
The group had initially offered to pay roughly US$275 million for the company, plus the assumption of US$225 million in debt.
The company board sent a letter to Contreras-Sweet and one of the primary backers, Ron Burkle, expressing its disappointment.
“Late last night, you returned to us an incomplete document that unfortunately does not keep your promises,” the letter said. “That is regrettable, but not in our power to change.”
The Weinstein Company was unavailable for comment.