By Jessica DiNapoli
(Reuters) - A company formed by BroadwayProducerHoward Kaganattempted to make a late Tuesday bid for the Weinstein Company, the TV and film studio that filed for bankruptcy after Co-founderHarvey Weinsteinwas accused of sexual assault, setting up an auction if the bid is considered.
After Monday's bid deadline had passed, Kagan's InclusionMedia Llcsubmitted a bid of $315 million in cash, according to documents provided to Reutersby Lorna Brett, a Spokeswomanfor a Lawfirm suing Weinstein and The Weinstein Company
Brett does not represent Kagan or Inclusion, neither of which immediately responded to requests for comment.
The Inclusionbid, submitted to lawyers and advisers for The Weinstein Coand to its creditors committee, tops an initial bid by private equity firm Lantern Capitalworth $310 million. Inclusionalso provided a compensation fund for those with harassment claims against Weinstein.
Lantern was the only bid for the entire company that was received by Monday's 5 p.m. ET deadline, several sources told Reuters
The Weinstein Companyfiled for bankruptcy in March with the offer from Lantern Capitalin hand as a so-called stalking horse bidder.
It was unclear if The Weinstein Companywill consider the bid by Inclusion, a company recently formed by Kagan, an Investment Bankerwho spent the past 10 years producing Broadwaymusicals, according to the bid documents.
Brett, who represents Armenta LawFirm, said Inclusionwas seeking a deadline extension for its bid. Armenta represents Louisette Geiss, an Actresswho is suing The Weinstein Companyand who also chairs the unsecured creditors committee in the bankruptcy.
If the bid is accepted, an auction pitting Lantern against Inclusionwill take place on Wednesday, and a hearing to confirm the sale is scheduled for Friday.
There were some offers for parts of the company that were not accepted, a source told Reuters
The sources asked not to be identified ahead of an Officialannouncement. The Weinstein Companydeclined to comment, while Lantern did not respond to a request for comment.
The company has been trying to line up a buyer for months.
When the allegations against Harvey Weinsteinbecame public in October, the company's board fired him, and Hollywood heavyweights distanced themselves from the studio.
Combined with lawsuits filed by Harvey Weinstein's alleged victims, the company was an unappealing acquisition target.
EARLIER OFFER SCUTTLED
An offer for the studio from a group of investors led by former Obama AdministrationOfficialMaria Contreras-sweetfailed to produce a deal earlier this year, after New York Attorney GeneralEric Schneidermanfiled a civil lawsuit against the company and demanded more compensation for victims.
Following Schneiderman's intervention, Contreras-Sweet's offer was tweaked to include an $80 million to $90 million compensation fund that would supplement any Insurance Payouts Victimswould receive.
Harvey Weinstein, once one of Hollywood's most influential men, has been accused of sexual misconduct including rape by more than 70 women.
He has denied having non-consensual sex with anyone. It is unclear how much money his alleged victims will receive should a deal with Lantern go through.
Co-founded with Bob Weinstein, Harvey's brother, The Weinstein Companyproduced and distributed critically acclaimed hits including "The King's Speech" and "Silver Linings Playbook," as well as TV's fashion reality competition "Project Runway"
With its bankruptcy filing, The Weinstein Companysaid it released anyone "who suffered or witnessed any form of sexual misconduct by Harvey Weinstein" from nondisclosure agreements, contracts that prevented victims from speaking out.
Weinstein Company's prized asset is its library of 277 feature films that have generated over $2 billion in aggregate box office receipts worldwide.
Based in Dallas, Texas, Lantern is a buyout firm founded by Andy Mitchell, the former Headof Ally Financial's global special Assetsgroup.
(Reporting by Jessica Dinapoliin New York; Additional reporting by Tom Halsin Wilmington, Delaware and Diptendu Lahiri in Bengaluru; Editing by Paul Simao, Arun Koyyurand Cynthia Osterman)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)