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Weinstein Company Holdings – Seeks Court Approval of Settlement Agreement

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August 9, 2018 – Weinstein Company Holdings filed with the Court a settlement agreement by and among (a) The Weinstein Company LLC (“TWC”) and The Weinstein Company Holding Debtors (“TWC Holdings” (collectively with TWC “TWC Debtors”) (b) the Chapter 7 Trustee (“Genius Trustee”) for the Estate of Genius Products and (c) National Union Fire Insurance Company of Pittsburgh in connection with resolving the Genius Lawsuit.

The Genius Lawsuit has asserted seven causes of action against the TWC Debtors, and seek the recovery of more than $130 million in payments that Genius made to TWC [Docket No.1337]. The motion notes, “the Debtors believe the Settlement Agreement is fair, reasonable and in the best interests of the Debtors’ estates and their creditors. First and foremost, the Genius Lawsuit is not among the liabilities assumed by Lantern under the Asset Purchase Agreement and therefore, remains a liability of the TWC Debtors’ estates. Accordingly, resolving Genius’s more than $130 million claim through a settlement in which National Union pays the full $2,500,000 settlement payment and the TWC Debtors’ Defense Costs will remove one of the largest unsecured creditor claims solely from proceeds of the Policy. In addition, resolving the Genius Lawsuit now will eliminate any prospect of the Debtors needing to subject its professionals or other retained individuals to perform work related to the Genius Lawsuit claims either within these Chapter 11 cases or in the event that litigation of the Genius Lawsuit resumes…The TWC Debtors’ probability of success in litigation is not certain, as the Genius Trustee has withstood two separate motions for dismissal of his remaining claims, which reflects that further litigation of the claims would carry with it the risk that the Genius Trustee could prevail. If the settlement is not approved, the risk to the TWC Debtors’ estate may be substantial, as any amount ultimately found to be due to Genius either may not be covered by the Policy for the reasons set forth in National Union’s Reservation of Rights Letter or may exceed the available insurance coverage.”

The Court scheduled a September 5, 2018 hearing to consider the settlement agreement with objections due by August 23, 2018.

Read more bankruptcy news on the Weinstein Company.

The post Weinstein Company Holdings – Seeks Court Approval of Settlement Agreement appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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