Weinstein disclosure statement OK’d; plan hearing slated for Jan. 14

By Sarah Lizee

Olympia, Wash., Nov. 18 – Weinstein Co. Holdings, LLC received approval of the disclosure statement for its fourth amended joint Chapter 11 plan of liquidation on Tuesday, according to a filing in the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is set for Jan. 14.

The company said in its disclosure statement that the plan contemplates a settlement of the claims and pending lawsuits arising from Harvey Weinstein’s misconduct, and disputes over the insurance companies’ obligations under various insurance policies potentially providing coverage for those claims.

Of the roughly $35.21 million settlement being paid by the insurance companies on behalf of the released parties, and Harvey Weinstein, but only with respect to sexual misconduct claims held by those who affirmatively elect to release him, around $25.47 million will be applied to satisfy claims of creditors, comprised of $17.06 million to be paid to the sexual misconduct claims fund and $8.4 million to the debtors’ estates, to be distributed to satisfy in full unpaid administrative and priority claims and make a pro rata distribution to holders of other tort claims and general unsecured claims.

Holders of other tort claims and general unsecured claims are expected to receive a roughly 2% recovery in cash, respectively.

Holders of other priority claims and secured tax claims will be paid in full in cash, and secured claimholders will get the collateral securing their claims or cash in full.

Holders of intercompany claims and interests will receive no distributions.

Weinstein is a New York-based entertainment company. The company filed bankruptcy on March 19, 2018 under Chapter 11 case number 18-10601.

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