Weinstein eyes conversion of Chapter 11 bankruptcy case to Chapter 7

By Caroline Salls

Pittsburgh, May 15 – Weinstein Co. Holdings LLC asked the U.S. Bankruptcy Court for the District of Delaware to convert its Chapter 11 bankruptcy case to Chapter 7, according to a motion filed Tuesday.

With no remaining operating business and mounting administrative costs, the Weinstein debtors said they have considered the alternatives for concluding their bankruptcy cases.

The company said the debtors believe that the primary remaining task for their estates is resolving potential claims against Weinstein’s directors and officers.

Although the prosecution of those claims was originally intended to be completed by the official committee of unsecured creditors appointed for the cases, the company said it was running out of funds and has instead requested court approval to hire Bernstein Litowitz Berger & Grossmann, LLP as special litigation counsel.

Weinstein said Bernstein Litowitz is highly qualified to help the company and/or any Chapter 7 trustee with the resolution of the claims.

If the case is converted, the company said it would not need to incur the costs of a Chapter 11 plan process.

A hearing is scheduled for June 4.

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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