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Thursday, March 28, 2024

Weinstein Company Loans: Banks Have Egg on their Face Over Effusive Praise

Courtesy of Pam Martens

Wall Street Bull Statue in Lower Manhattan

In 2013, when a division of CIT served as a joint lead arranger for a $370 million senior secured credit facility to the Weinstein Company, an executive of the lender, Kevin Khanna, issued a statement effusively praising the management of the Weinstein Company, stating:

“The Weinstein Co. is one of the premier Hollywood studios in the world and we are pleased to further expand our relationship with them through this recent financing. As a key player in the film financing sector, we pride ourselves in putting our knowledge to work on behalf of our clients to help them achieve their goals.”

Today, the Weinstein Company stands as the premier poster boy for mismanagement of its brand, reputation and franchise as sexual assault and sexual harassment charges, stretching over three decades, have been lodged against its co-founder and key executive, Harvey Weinstein. The charges have ricocheted around the world for almost two weeks with police investigations now open in New York and London. (Harvey Weinstein was fired by the Board a few days after the first story appeared in the New York Times and just two days before a second article would appear in the New Yorker, which added claims of rape by three women to the mushrooming scandal.)

Last year, Opus Bank was even more lavish in its praise for the Weinstein Company when it announced that it had provided $15 million of a $400 million senior credit facility which was “agented” by Union Bank.

Michael Allison, Co-President of Opus Bank and President of Opus’ Commercial Bank had this to say in a press release at the time:

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