The Weinstein Company announced Monday that it had officially filed for bankruptcy, though the company may yet be able to re-organize and continue to produce TV shows and films under new ownership.
More interestingly, the company also announced that it has released its employees from their non-disclosure agreements as part of an ongoing negotiation with New York Attorney General Eric Schneiderman.
The bankruptcy filing also states that the Weinstein Company has less than $500,000 cash on hand. The company has obtained a $25 million debtor-in-possession loan from Union Bank, the lead lender on its credit facility. The Weinstein Co. is known to owe about $225 million under a credit facility led by Union Bank.
The obvious question is also being raised as to how much money will be left for victims of Weinstein’s alleged harassment. Insurance is expected to provide up to $30 million, though the insurer may yet contest its obligation to pay.