Weinstein Co. Faces Lawsuit Over $45 Million Loan

Film producer Harvey Weinstein attends the 2016 amfAR New York Gala at Cipriani Wall Street in Manhattan, New York.
Financial pressures on The Weinstein Co. keep mounting in the wake of a sexual misconduct scandal swirling around Harvey Weinstein. The latest is a lawsuit from AI International Holdings, which claims in New York Supreme Court that a $45 million loan is now in default and that repayment must be made immediately. NETFLIX, INC. - Production Is Underway On Epic Netflix OriginalAI International, a division of Len Blavatnik’s Access Industries, reports being issued a promissory note in September 2016, with a section that provided for default upon “the occurrence of a Material Adverse Change.”

 

The lender is now pointing to recent events — allegations of sexual harassment and rape, Weinstein’s termination, an exodus of business partners, board members and creative partners, etc. — as a trigger.

“Weinstein’s termination and the facts and circumstances leading to and surrounding that dismissal … constitute a Material Adverse Change as defined in the Note,” states the complaint.

 

AI International says it told TWC it was in default on Oct. 10, and that since then, the borrower has twice failed to pay interest payments due.

 

Written By: Tommy Lightfoot Garrett
Photographs are Courtesy:  AP
Follow us on Twitter @HighlightHwd or @LightfootinHwd