Welcome

Weinstein Accusers Blast Bankruptcy Plan as Gift to Insurers

Oct. 16, 2020, 8:59 PM

The Weinstein Company Holdings LLC’s bankruptcy plan is an attempt by the company’s insurers to hijack the bankruptcy process to limit their litigation exposure, according to a group of women with sexual abuse claims against the studio and former directors.

Producer Alexandra Canosa and actresses Wedil David and Dominique Huett Thursday urged the U.S. Bankruptcy Court for the District of Delaware to convert the production company’s Chapter 11 case to a trustee-controlled Chapter 7.

The pending restructuring proposal “permits the insurance companies to re-write existing policies and offer a fraction of policy coverage that is available,” they said in a court filing.

Instead, the bankruptcy judge should reject the insurers’ settlement arrangement and allow Harvey Weinstein’s accusers to pursue potentially greater recoveries in their own, separate court cases, the women said.

The Chapter 11 plan “is the best opportunity for a meaningful recovery for holders of sexual misconduct claims, as well as the rest of the debtors’ creditors,” the company said in a Thursday court filing.

The defunct studio is seeking to establish a $17 million fund for sexual abuse victims as part of its plan, but said it will only seek confirmation if a class of sexual misconduct claimants votes to approve it.

The company filed for bankruptcy in 2018 amid the fallout of sexual assault and rape claims against Weinstein, who is now serving a 23-year prison sentence.

The case is In re The Weinstein Co. Holdings LLC, Bankr. D. Del., No. 18-10601, brief filed 10/15/20.

To contact the reporter on this story: Alex Wolf in New York at awolf@bloomberglaw.com

To contact the editor responsible for this story: Laura D. Francis at lfrancis@bloomberglaw.com, Melissa B. Robinson at mrobinson@bloomberglaw.com

To read more articles log in.

Learn more about a Bloomberg Law subscription.