Weinstein Said to Wipe Out $450 Million Debt With Goldman Deal
Weinstein Co., the film studio run by brothers Bob and Harvey Weinstein, reached an agreement with Goldman Sachs Group Inc. to eliminate its $450 million in debt, a person with knowledge of the terms said.
Goldman was paid $115 million and took ownership of 250 films with $225 million in receivables and future cash flow that should retire Weinstein’s debt, said the person, who asked not to be identified because the accord isn’t public. Weinstein will be paid to manage the movies and can buy them back before 2016.
The agreement frees New York-based Weinstein of $30 million a year in interest payments, the person said. The closely held studio retains 150 titles including “The Reader” and “Inglourious Basterds.” Goldman and partner Assured Guaranty Ltd. got titles including “Halloween II” and “The Road,” The Wall Street Journal reported earlier today.
“Obviously this is an exciting time for the company,” Harvey Weinstein said in an interview. “It’s always nice when a deal can be a win-win for all partners involved.”
Goldman Sachs, the most profitable Wall Street firm in U.S. history, fell 9 cents to $134.98 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have declined 20 percent this year.
“We believe that the restructuring will allow the Weinstein Company to continue to produce new films, and to create value for all of its stakeholders,” Goldman said in an e-mailed statement. “All of the parties to the transaction have worked to arrive at this resolution.”