Weinstein on the brink as $500m rescue deal collapses

Harvey Weinstein’s former movie and TV studio looks set to file for bankruptcy after an 11th-hour attempt to buy the company collapsed.

A group of investors led by former President barack Obama official Maria Contreras-Sweet was planning to buy the Weinstein Company in a $500 million (£360 million) deal.

It pulled out when it discovered a further $50 million of undisclosed debt on the books, on top of the $225 million already known about.

The rescue plan, which had already stalled once but was revived, would have saved about 130 jobs in New York and Los Angeles.

It would have put a majority of women directors in control of the company, which was founded by disgraced movie mogul Weinstein and is behind hits including Django Unchained and The Artist.

The proposed rescue deal apparently included a $90 million compensation pot for the victims of alleged attacks by the film producer.

Contreras-Sweet said her investor group, which also included billionaire Soho House part-owner Ron Burkle, would consider acquiring Weinstein Co assets that may be up for sale in the event of bankruptcy proceedings.

There is likely to be great interest from rivals in the entertainment business in its film library and TV division, which was valued at $1 billion three years ago and was responsible for making War and Peace for the BBC.