The Weinstein Co. bankruptcy is bad news for victims of Harvey Weinstein's sexual harassment, who will likely receive little or nothing in compensation from the bankruptcy estate.
The company reportedly listed $500 million to $1 billion in liabilities and $500 million to $1 billion in assets.
Sommenfeld said the Weinstein Co.'s bankruptcy, while not an utter surprise, might serve as a warning to others.
Lantern was among a group of investors that had been in talks for months to buy the company outside of bankruptcy.
"It is an understatement to say that the last six months have been trying for the company", Chief Restructuring Officer Robert Del Genio said in court papers.
Eric Schneiderman, New York's attorney general, filed a lawsuit against the company in February on behalf of its employees.More news: Why Mohamed Salah can't be compared to Lionel Messi: Watford boss explains
The filing itemizes $345 million in secured debt, plus an additional $148 million in unsecured obligations. The bankruptcy also releases current and former employees from nondisclosure agreements. "The company regrets that it can not undo the damage Harvey Weinstein caused, but hopes that today's events will mark a new beginning", the company said.
"The Weinstein Company's agreement to release victims of and witnesses to sexual misconduct from non-disclosure agreements - which my office has sought throughout this investigation and litigation - will finally enable voices that have for too always been muzzled to be heard", Schneider said in a statement.
This week's NY magazine features a story questioning why D.A. Cyrus Vance Jr. hasn't prosecuted Weinstein. The statement thanks "the courageous individuals who have already come forward".
The move is the company's latest attempt to save it from sinking due to the allegations against its co-founder.
At the beginning of March, an investor group headed by Maria Contreras-Sweet and Ron Burkle reached a deal to purchase the Weinstein Company assets and use them to form a new, female-led movie studio. Through a representative he has repeatedly denied allegations of "non-consensual sex". So far, more than 100 women have accused him of sexual harassment and assault.
The group called on NY state governor Andrew Cuomo to open an investigation to determine why Mr Cyrus Vance did not prosecute the 66-year-old Hollywood ex-powerbroker in a 2015 case, arguing it could have saved other potential victims.