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In re Weinstein Co. Holdings LLC

3rd Circuit

May 21, 2021

The Third Circuit issued two nearly identically captioned opinions — In re Weinstein Co. Holdings LLC — in which the Court dealt with issues revolving around Harvey Weinstein’s bankruptcy proceedings. When The Weinstein Company (TWC) declared bankruptcy, it found a buyer in the Spyglass Media Group. In one case, the Third Circuit heard an appeal from the District Court’s order which affirmed the bankruptcy court’s order denying the motion of a group of investors who sought payment for royalties on movies they funded. The Third Circuit affirmed, holding that the asset purchase agreement between TWC and Spyglass did not classify the investors’ contracts as purchased assets. Thus, the associated obligations were not assumed liabilities. In the second case, the Third Circuit held that a contract between TWC and a producer is not an executory contract.

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