Recently, the U.S. Bankruptcy Court for the District of Delaware issued a memorandum opinion in support of oral ruling pursuant to Local Bankruptcy 8003-2, granting the motion of Robert Weinstein for entry of an order enforcing the sale order and granting related relief. In this decision, the Bankruptcy Court had to interpret arguably conflicting provisions contained within a certain asset purchase agreement that the debtors and Spyglass Media Group LLC (f/k/a Lantern Entertainment LLC), the purchaser of the debtors’ assets, had entered into during the course of the debtors’ bankruptcy cases.
Prior to the commencement of the bankruptcy cases, Robert Weinstein, the brother of Harvey Weinstein, had entered into a certain employment agreement with one of the debtors, The Weinstein Company Holdings LLC. By its terms, Weinstein’s employment agreement expired Dec. 31, 2015. Pursuant to the terms and conditions of this employment agreement, Robert Weinstein, in addition to his salary, was granted “an interest in certain net revenues received by the debtors from some of the films which [Robert Weinstein] had produced” (the participation interest).