Weinstein Company Hit With Lawsuit Over $45M Loan And “Material Adverse Change”
REX/Shutterstock/TWC As the financial future of the Weinstein Company remains uncertain and ex-co-c..
REX/Shutterstock/TWC
As the financial future of the Weinstein Company remains uncertain and ex-co-chair Harvey Weinstein is under multiple police investigations for alleged sexual assaults, today the disgraced producer and the company he co-founded were hit with a lawsuit demanding repayment of a $45 million loan.
The legal action by AI International Holdings is seeking the big bucks repayment of a loan they made to TWC back in September of last year, according to documents filed in New York Supreme Court. After having attempted to gain repayment outside of the courts earlier this year, AI resorted to today’s move in an attempt to gain some leverage in the event the struggling TWC is either sold or shuttered.
Today’s filing emphasizes an element of the 2016 loan agreement that places TWC in default if an “occurence of a Material Adverse Change” happens.
As sexual harassments and sexual assault allegations have been made against Harvey Weinstein since the October 5th expose by the New York Times and others subsequently, AI now argues that the change as laid out in their agreement with TWC has occurred. Weinstein was terminated by the remaining TWC board members, including his brother, Bob Weinstein, on October 8th. The producer formally resigned from the TWC board on October 17th and has entered into talks about his formal status with the company of which he still owns 23 percent.
“Weinstein’s termination and the facts and circumstances leading to and surrounding that dismissal” says today’s filing, “constitute a Material Adverse Change as defined in the Note.”
Currently, TWC owes AI $43.5 million. The complaint in NY Superior Court is also seeking fees and interest. Reps for Harvey Weinstein and TWC did not respond to requests for comment by Deadline.
Harvey Weinstein has himself sued The Weinstein Company – to both help himself and them, he claims.
In a filing in Delaware earlier this month, the disgraced producer sought to quickly obtain copies of his complete personal TWC employment file and all correspondence, including his company email. Weinstein wants the material for his own defense against being fired, fighting current and possible forthcoming legal action against himself and TWC, and to make sure his stock in the company isn’t hurt if they make “unjustified settlements.”
