Weinstein Co. LLC filed March 19 for bankruptcy and entered into a "stalking horse agreement" with an affiliate of Lantern Capital Partners to purchase all assets of the film studio.
The sale agreement, which is pursuant to section 363 of the Bankruptcy Code, will be subject to court approval.
The company has more than 200 creditors, and liabilities fall in the range of $500 million to $1 billion, as well as its assets, according to the bankruptcy filing.
In line with Weinstein's Chapter 11 filing at the District of Delaware, the company announced that it is releasing any confidentiality agreements that have prevented anyone from speaking against sexual misconduct allegations by Harvey Weinstein, Variety reported. The producer stepped down from his company's board last year amid revelations of multiple sexual abuse claims against him.
The move to file for bankruptcy comes after talks to sell the company's assets to an investor group collapsed. The company's board on Feb. 25 notified Ron Burkle and former U.S. Small Business Administration Maria Contreras-Sweet, the lead investors in the bid consortium, that it will no longer push through with the transaction due to the bidders' lack of financing for the company.
In January, Weinstein reported that it had short-listed six potential buyers, including Lions Gate Entertainment Corp., a consortium led by Contreras-Sweet, production company Killer Content and investment firms Vine Alternative Investments and Shamrock Capital Investments.
The company also had exclusive sale discussions with Colony Capital Inc. late in 2017, which later collapsed.