Weinstein Co. deal collapses in yet another twist, pushing studio closer to bankruptcy

The $500-million deal for an investor group to acquire Harvey Weinstein's former movie and TV studio has collapsed — again — in yet another twist in the chaotic saga of Weinstein Co.

Three sources close to the investor group, led by former Obama administration official Maria Contreras-Sweet, said Tuesday that it found at least $50 million in undisclosed liabilities on the New York company's books.

The surprise debts, which would have significantly increased the purchase price of the assets, torpedoed negotiations, said the knowledgeable people, who were not authorized to speak publicly.

"All of us have worked in earnest on the transaction to purchase the assets of the Weinstein Company," Maria Contreras-Sweet, a former head of the Small Business Administration who was leading the investment group, said in a statement. "However, after signing and entering into the confirmatory diligence phase, we have received disappointing information about the viability of completing this transaction."

Source:  latimes