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Bids for The Weinstein Company are due on Wednesday, an individual familiar with negotiations told TheWrap.
It’s unclear how many bidders may emerge for the indie studio by day’s end — and whether they will see the whole company or pieces of the operation assembled by brothers Bob and Harvey Weinstein 12 years ago.
TWC was on the verge of bankruptcy back in November after the company fired Harvey Weinstein in the wake of several damning sexual misconduct accusations. The company bought time by selling the domestic distribution rights for “Paddington 2” to Warner Bros. for $28 million.
Christine Vachon’s Killer Content and Maria Contreras-Sweet, former head of the Small Business Administration, are among the bidders, Variety reported.
Complicating matters for TWC is its suffocating debt. Two individuals with knowledge of the situation told TheWrap the company’s estimated total debt is about $900 million, however insiders pegged it at closer to $300 million outstanding. TWC re-upped a $500 million senior credit facility with a variety of institutions last year, which carries a 4 percent interest rate. And the company is only releasing about six to eight movies a year.
Another individual close to the film finance industry told TheWrap he had heard TWC was looking to raise even more debt, this time in a fourth lien position — an extremely rare and almost certainly very expensive financing arrangement that would indicate cash pressures.The bondholders control TWC’s assets, including its library, and will likely want $1 billion or more to be made whole.
Once offloaded, TWC will change its name — something TheWrap reported the company was looking into in October.