Entertainment Weinstein Co. Sale In Doubt Due to Attorney General Intervention

20:56  11 february  2018
20:56  11 february  2018 Source:   variety.com

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The potential sale of the troubled Weinstein Co . is under doubt , after Attorney General Eric Schneiderman threatened to intervene . Updated: Attorney General Eric Schneiderman confirmed on Twitter that his office is filing a civil rights lawsuit against Weinstein Co .

Harvey Weinstein wearing a suit and tie © Provided by Variety

A deal to buy the troubled Weinstein Co. is in serious doubt as the New York attorney general has threatened to intervene, according to a source familiar with the situation.

An investor group led by Maria Contreras-Sweet has been in talks to buy the company for $500 million (C$629 million), including $225 million (C$283 million) in assumed debt. That deal was expected to be announced as soon as today.

But Attorney General Eric Schneiderman has thrown a wrench into the process by raising concerns about David Glasser, the man who would become CEO under the new group. Glasser was a right-hand man to Harvey Weinstein, and the attorney general’s office has come to believe that he failed to protect employees from Weinstein’s sexual misconduct. The office has also raised concerns with the new ownership group about whether a proposed victims’ fund would provide adequate compensation.

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A deal to buy the troubled Weinstein Co . is in serious doubt as the New York attorney general has threatened to intervene , according to a source familiar with the situation.

Gazelle.

The attorney general’s office is expected to bring a lawsuit seeking to attach conditions to the sale. The investor group, backed by billionaire Ron Burkle, is said to have balked at that prospect.

The attorney general’s office first contacted Contreras-Sweet last week, but the Weinstein Co. board initially prevented her from returning the call due to a non-disclosure agreement, a source said. When she finally got in touch with the office over the weekend, and learned of the potential conditions, she became reluctant to move forward.

Other sources downplayed whether the attorney general’s intervention would prove fatal to the deal.

Celebrity reactions to Harvey Weinstein scandal (via Photo Services): 

Georgina Chapman is 'not a victim' of Harvey Weinstein .
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