Lantern’s All-Cash Bid For The Weinstein Co. Is $310 Million, Documents Show

Lantern’s All-Cash Bid For The Weinstein Co. Is $310 Million, Documents Show

Lantern Asset Management, whose stalking-horse bid for The Weinstein Co. was revealed in a Chapter 11 bankruptcy filing last night, is offering $310 million in cash for the assets of the company.

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In a series of filings this morning in Delaware bankruptcy court, the assets were identified. On the film side, there is a library of 277 releases, among them Oscar winners like The King’s Speech, which have generated more than $2 billion in box office receipts. On the TV side, it is mainly Project Runway, plus some newer projects such as Paramount Network limited series Yellowstone.

A hearing this afternoon in Delaware will begin the formal 363 process. This approach to a bankruptcy filing has become common in recent years, with MGM Studios recently employing it to gain a new lease on life. It is still too early to tell if the Weinstein Co. will get a second act as a stand-alone company.

About 25% of the staff of the company has already departed since the spate of accusations of sexual abuse and harassment lodged against Harvey Weinstein, according to the documents. Prospects for the remaining employees are unclear, though the 363 proceeding (a bankruptcy approach that is increasingly common, and that MGM went through a few years ago) many jobs could be preserved. Additionally, the non-disclosure agreements many workers signed would be nullified under the deal.

So who is Lantern Asset Management? The company is not a familiar name in entertainment circles, but the Dallas-based company led by president Andy Mitchell has put together a steady stream of deals in the middle-market range. Real-estate development, especially golf courses, has been the company’s sweet spot. A pledge on its website may offer some reassurance to those connected to the Weinstein Co. “Lantern is known for being an advocate for change rather than an antagonist for control,” it declares.

The deadline for qualified bids, according to the document, is April 30. But the point of the stalking-horse strategy is to avoid an auction situation, so Lantern is believed to be in pole position to control the fate of the company.