WILMINGTON, Del (Reuters) - An affiliate of Lantern Capital received approval from a U.S. bankruptcy judge on Tuesday to buy the assets of the Weinstein Co, but the price may leave little for those who alleged sexual harassment by founder Harvey Weinstein.
Lantern Entertainment was the only bidder for the company, which filed for bankruptcy after more than 70 women came forward accusing Weinstein of sexual misconduct, including rape.
He has denied having non-consensual sex with anyone.
The Weinstein Co described Lantern’s bid as $310 million in cash, with assumption of $127.2 million of secured debt.
An attorney for the official creditors committee said the actual purchase price, after adjustments, was going to be closer to $260 million.
“That doesn’t leave enough money for the all the creditors,” Debra Grassgreen, a Pachulski Stang Ziehl & Jones attorney who represents the creditors committee, said at Tuesday’s hearing. She said the best hope for money for harassment plaintiffs may come from litigation, rather than the sale.
Lawyers for the Weinstein Co will begin the process of determining how to divide the funds raised from the sale of the assets, which includes films such as “Silver Linings Playbook” and the “Project Runway” television franchise.
Secured creditors get paid before general unsecured creditors, which includes claims for harassment. The company said it had about $345 million in secured debt when it filed for bankruptcy, includes the debt Lantern is assuming.
Gloria Allred, who represents harassment plaintiffs, told Reuters on Sunday she doubted the bankruptcy process would leave enough money to pay all harassment claims.