BANKRUPT

Weinstein Owes Money to Malia Obama, David Bowie and Thousands More

The creditor list accompanying the bankruptcy filing of the Weinstein Company makes fascinating reading. But harassment victims may get nothing.

David Bowie, Malia Obama, and Robert De Niro are among the thousands of creditors who are owed money by The Weinstein Company, which filed for Chapter 11 bankruptcy protection this week following the Harvey Weinstein sex scandal. However, it has been revealed harassment victims may get nothing from the troubled corporation.

An exhaustive 394-page list of creditors has been published as part of the company’s filings.

The list includes dozens of A-list stars such as Pierce Brosnan, Jennifer Lawrence, Seth Rogen, and Heidi Klum.

Details of how much is owed and why have not been revealed, so it is unknown, for example, how President Obama’s daughter Malia came to be on the list. She interned for the company in 2017 before the scandal was exposed, and may be owed wages from that stint.

The document includes a wide range of creditors, from other film companies and literary agencies to tradesmen and makeup artists.

It also includes directors Michael Bay and Quentin Tarantino, and even charities such as the American Cancer Society.

Legal experts have speculated that the bankruptcy application, if granted, could be bad news for any victims of sexual assault by Harvey Weinstein, who may not receive a penny in compensation.

Secured creditors get paid first, but harassment victims would be counted as unsecured creditors, and would be the last to get paid.

“Chances are this is the worst possible outcome for the victims,” Ted Gavin, managing director of Gavin/Solmonese, a consulting firm that specializes in restructuring, told Variety.

The revelation that harassment victims may now get nothing has cast the company’s decision to void all nondisclosure agreements in a questionable light, as while allowing people to speak up, the company is effectively saying it won’t be able to pay any judgements.

Cris Armenta, one of the plaintiffs’ attorneys in a class-action suit against the company told Variety: “I think it was a PR move,” she said.

Variety reports that Lantern Capital, which has made a bid for the troubled company, would not be required take on on any liabilities from sexual-harassment lawsuits.

However, the Weinstein Co. does reportedly have $30 million in “employment practices insurance coverage, which would still potentially be available” and victims could still pursue Weinstein personally.

In bankruptcy court in Delaware on Tuesday, Weinstein Co. attorney Paul Zumbro said: “We are not here to protect Harvey Weinstein or to deprive anyone of a claim against Harvey Weinstein. The Weinstein Co. has filed for bankruptcy relief, but that in no way affects anyone’s ability to pursue civil or criminal claims against Harvey Weinstein in his individual capacity.”

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Tom SykesEuropean Editor at Large

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