Although TWC was reportedly in poor financial shape before allegations against Harvey Weinstein came to light, it now appears that the situation is far more dire than once thought.
A report by Variety has it that the US distribution rights to Paddington 2 are to be sold off before the company files for bankruptcy. According to Variety's sources, the company is thought to be close to $500 million in debt, and is currently seeking loans of up to $35 million to meet its payroll expenses for this week.
The loan, however, would be leveraged against part of their film and television library - which is reportedly already mortgaged. Paddington has been a big earner for TWC, with the first film being the fourth biggest film they have been involved with since launching in 2005. The film pulled in just over $76 million in the US alone, an unknown portion of which went to the Weinsteins.
Previously, a report by the Guardian had it that StudioCanal and Heyday Films, the producers behind Paddington 2, were eager to dump TWC out of its US distribution deal and hand the rights off to someone less tainted by the ever-growing Hollywood sex scandals. An insider source told the Guardian that it was "deeply frustrating that a film made with such love and care and a character of such positive and generous spirit might, in some way, be tarnished with the brush of these horrific, wholly unacceptable, acts."
StudioCanal and Heyday Films have made no official statement since the news broke, and the Irish distributor of Paddington 2, Element Pictures, have been contacted for comment.
Via Variety