November 17, 2017

Variety quotes Keith Owens in article about how the Weinstein Co. is facing bankruptcy

1 min

Keith Owens was quoted in an article in Variety on November 17, 2017, about how the Weinstein Co. is facing bankruptcy. According to the article, the Weinstein Co. is reviving its attempts to sell itself or the bulk of its film and television assets. The company was on the verge of bankruptcy last week, but after selling domestic distribution rights to "Paddington 2" in a $28 million deal with Warner Bros. it has bought itself some time. With the money, it now has enough cash to meet its payroll obligations, but it doesn’t have as much of a financial cushion as it would seem.

On November 10, AI International Holdings, part of investor Len Blavatnik's empire, filed a lawsuit in New York Supreme Court, claiming that the Weinstein Co. had defaulted on a $45 million loan. It is demanding that the studio repay the loan immediately.

"There's nothing a bankruptcy of the company will do to impact the lender's ability to pursue claims against the guarantor," said Owens. If they choose to be aggressive about it, Blavatnik's attorneys could go after Weinstein's assets by, for example, putting a lien on his house.