The Weinstein Company may be doomed following Harvey Weinstein‘s ousting.
And while the decision to fire Harvey was clearly the right one, it seems there is some financial repercussion to letting the Hollywood heavyweight go. According to TMZ, a major film financier has removed its loan from TWC because Harvey is no longer leading the company.
Apparently, AI International Holdings fronted a $45 million loan to TWC last year and has since demanded that the money be returned. Yikes!
In a letter written by AI’s legal team for TWC’s lawyers at O’Melveny & Myers, the company claims that “the dismissal of Harvey Weinstein from his position as co-chairman” creates a “material adverse change.” In short: Weinstein’s firing allows them to request for an immediate repayment of the loan.
AI isn’t a stranger to the entertainment industry as the company financed several blockbusters — including Lee Daniels‘ The Butler, Hacksaw Ridge, and the upcoming flick I, Tonya.
To make matters worse, TWC has been hit with its first lawsuit post-Harvey. It’s said the lawsuit has been filed by former Paramount President of Production Brad Weston and producer Michael Menchel. The industry vets claim they produced the James Corden led One Chance for a reduced fee in exchange for back end profits.
The producing pair agreed to this deal as TWC promised that the movie would appear on 800 screens, but in reality, only showed on 43. Damn.
Understandably, Weston and Menchel are seeking $1.25 million each. As it’s believed that Harvey was the linchpin for TWC’s years of success, these updates add more fuel to the gossip fire that the mini-major film studio can’t last without the scandalized filmmaker.
Sucks to suck, The Weinstein Company!
[Image via WENN.]