Weinstein Company could be forced into bankruptcy: source
The Weinstein Company’s talks to get a lifeline from Fortress Investment Group have stalled amid concerns about the flailing Hollywood studio’s financial condition, The Post has learned.
The chances of a deal getting done have recently slid to “roughly 50 percent” as Fortress weighs the risks of extending $35 million in rescue financing to TWC following the sex scandals that have engulfed co-founder Harvey Weinstein, according to a source close to the talks.
The financing, as of last week, was believed to be imminent, according to a Bloomberg report.
The loan from Fortress “is not definitely happening,” the source said on Tuesday, cautioning that the situation was fluid and that talks were still ongoing.
Without a loan, the studio could be forced into bankruptcy in the coming months, financial sources speculated.
Last month, Colony Capital — headed by billionaire Trump confidant Thomas Barrack — reportedly backed out of talks to save TWC in exchange for claims on its extensive library of movies.
Those talks were reported shortly after Weinstein Company co-founder Bob Weinstein denied that the studio was weighing a sale of its assets.