Goldman Sachs marks stake in Weinstein Co all the way down to zero: supply

(Reuters) – Goldman Sachs Group Inc has written all the way down to zero the worth of its stake within the Weinstein Firm, the film studio whose co-chairman Harvey Weinstein stepped down final month following sexual assault allegations, an individual conversant in the matter mentioned on Monday.

FILE PHOTO: An indication is displayed within the reception of the Sydney places of work of Goldman Sachs in Australia, Could 18, 2016. REUTERS/David Grey/File Picture

Goldman Sachs’ transfer comes because the Weinstein Firm seems for recent financing after greater than 50 girls claimed that Weinstein sexually harassed or assaulted them over the previous three a long time.

Weinstein has denied having non-consensual intercourse with anybody. Reuters has been unable to independently verify any of the allegations.

Final month, Goldman Sachs mentioned it was looking for a purchaser for its stake within the Weinstein Firm. A Goldman Sachs spokesman had mentioned on the time that the financial institution valued the stake at lower than $1 million.

The supply didn’t disclose how a lot of the Weinstein Firm Goldman Sachs owns, however described the stake as small. He requested to not be recognized as a result of the financial institution has not publicly launched its newest valuation.

A Weinstein Firm spokeswoman didn’t instantly reply to a number of requests for remark.

One of many Weinstein Firm’s lenders, AI Worldwide Holdings Restricted, an affiliate of billionaire Len Blavatnik’s industrial group Entry Industries, filed a lawsuit final Friday in New York State Supreme Courtroom demanding rapid compensation of its roughly $44 million mortgage.

Referring to the allegations in opposition to Harvey Weinstein, AI Worldwide acknowledged in court docket papers that his actions and his departure from the corporate have “left [the business] in shambles,” and “uncovered to doubtlessly large liabilities [that] have severely, if not fatally, broken its standing within the market.”

A spokeswoman for Harvey Weinstein declined to remark.

The Weinstein Firm’s different lenders embody Financial institution of America and MUFG Union Financial institution N.A., based on the lawsuit. They didn’t instantly reply to requests for remark.

The Weinstein Firm’s board of administrators has been receiving recommendation from funding financial institution Moelis & Co on its efforts to boost money, together with by doubtlessly promoting belongings and discovering a rescue mortgage, sources have beforehand advised Reuters. A Moelis spokeswoman declined to remark.

Funding agency Fortress Funding Group LLC was contemplating lending to the movie and TV studio, however these talks ended and not using a deal final week, based on one other particular person conversant in the matter. Fortress would take into account offering Weinstein Co with funding to assist it by means of a chapter course of, if it got here to that, the particular person mentioned.

A Fortress spokesman declined to remark.

The Weinstein Firm’s lenders have employed funding financial institution Houlihan Lokey Inc for monetary recommendation in a possible restructuring, a supply near that state of affairs mentioned.

The Weinstein Co has been one in every of Hollywood’s most influential forces since its launch in October 2005 and has produced and distributed movies together with “The King’s Speech” and “Silver Linings Playbook.”

Reporting by Jessica DiNapoli in New York; modifying by Ben Klayman and Clive McKeef

Our Requirements:The Thomson Reuters Trust Principles.

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