THE WEINSTEIN COMPANY NOW DEBT-FREE
Hollywood powerhouse The Weinstein Company is now free of its $450 millio n (=C2=A3300 million) debt following a ground-breaking restructuring deal which saw the company hand over the rights to 200 films including HALLOW EEN II and SCARY MOVIE 4.
The film studio, set up by movie moguls Harvey and Bob Weinstein in 200 5, spiralled into debt over the last few years following a series of shak y investments in fashion, TV and online projects.
But the firm is now back on track after the Weinsteins agreed an innova tive deal which will see insurance company Ambac pay $115 million (=C2=A3 76.7 million) of the debt to financial companies Goldman Sachs and Assure d Guaranty.
The movie moguls wiped the rest of the debt by handing over control of 200 films to executives at Goldman Sachs, but they managed to retain the rights to the company’s most high-profile movies including Inglourious Ba sterds, Pulp Fiction and the Scream franchise.
The Weinstein Company will also receive a distribution fee on the title s now owned by Goldman, according to The Wrap.
Harvey Weinstein tells the website, "(It is) the perfect deal - four co mpanies perfectly aligned, in a deal that recoups incredible value for Th e Weinstein Company, and gives us the wherewithal to continue… We won=E2 =80=99t be buying clothing or internet companies. Those days are over." The deal means The Weinstein Company will be able to move forward with a number of projects, including The King’s Speech, which will see Colin F irth playing England’s stammering King George VI, and I Don’t Know How Sh e Does It with Sarah Jessica Parker.
Movie & Entertainment News provided by World Entertainment News Network (www.wenn.com)
