4:18pm PT by Ashley Cullins
Guilds Express Concern Over Residuals Payments Amid The Weinstein Co. Bankruptcy
The actors, directors and writers guilds are fighting to ensure their members receive proper payment amid The Weinstein Co.'s bankruptcy.
SAG-AFTRA, the DGA and the WGA on Monday filed a reservation of rights, explaining that TWC pays several million dollars each year in residuals to guild-represented employees and to related pension and health plans. The guilds expect the process of making sure payments owed are actually paid could be complicated by TWC's "long history of failing to provide basic economic data that producers and distributors routinely make available in normal course so that compliance with Residuals obligations can be ensured."
Specifically, the guilds take issue with their omission from a proposed $25 million debtor-in-possession loan from Union Bank, which would provide stopgap operations funding to keep TWC running during the course of bankruptcy proceedings.
"The Guilds are hopeful that ongoing discussions will resolve concerns for adequate protection; but if these concerns are not resolved, then the Guilds request such relief as this Court may order in furtherance of adequate protection for secured Guild claims, including but not limited to continuance of a final DIP Loan hearing, until guidance can be provided on relative priorities and identification of collateral in connection with secured creditors," writes attorney Susan Kaufman in the filing, which is posted below.
A hearing on the DIP loan motion is currently set for Thursday.