Harvey Weinstein and The Weinstein Company are being sued for defaulting on a $45 million loan, which had become immediately due after Weinstein was ousted from the company.
According to a lawsuit obtained by The Blast, AI International Holdings had loaned Weinstein and the company $45 million on September 29, 2016. But according to the suit, Weinstein and the company could be considered in default if there was “the occurrence of a Material Adverse Change.”
The lawsuit states, “Material Adverse Change shall mean, among other things, ‘(a) a material adverse effect upon the business, financial condition or results of operations of Weinstein TV, WGFC and Weinstein Holdco (individually or in the aggregate), [or] (b) a material impairment of the ability of any Loan Party to perform their respective obligations under the Loan Documents.'”
On October 8, Weinstein was fired from his position as co-chairman of The Weinstein Co. after he was accused of sexual harassment and rape.
AI argued that “Weinstein’s termination and the facts and circumstances leading to and surrounding that dismissal, … constitute a Material Adverse Change as defined in the Note.”
They issued a letter to Weinstein and the company on October 10 telling them they deemed them to be in default of the loan and the remaining balance —$43,459,176.23 – was due immediately.
Weinstein and the company never paid up, so now AI has filed the suit seeking their money back, plus interest and fees.