June 24 Movie studio The Weinstein Co has agreed to a major debt restructuring that gives Goldman Sachs Group Inc (GS.N) and Assured Guaranty Ltd (AGO.N) possession of as many as 250 films in its library, the Wall Street Journal said.
The restructuring, finalised by the companies on Wednesday, is designed to allow Weinstein Co to continue as a going concern and resolve the financial struggles that beset the studio shortly after it opened in 2005, the paper said.
As part of the restructuring deal, Goldman has agreed to subtract $115 million from Weinstein Co's total outstanding debt of $450 million, the newspaper said.
Any interest payments owed by Weinstein Co on the debt were eliminated in the agreement, the Journal reported.
Goldman and Assured Guaranty, which insured some of the company's debt, will also own a small portion of Weinstein Co's future projects, the report said.
If Weinstein Co can pay off the $335 million through film library revenue, it will emerge debt free and be able to reclaim ownership of those 250 movies, the newspaper said.
Weinstein Co and Goldman could not be immediately reached for comment by Reuters outside normal U.S. business hours.
Harvey and Bob Weinstein founded the company after they sold Miramax Films, the powerhouse studio behind such 1990s movies as "Pulp Fiction" and "Shakespeare in Love," to Walt Disney Co (DIS.N).
Over the years, Goldman has helped raised hundreds of millions of dollars to finance Weinstein Co's projects. (Reporting by Anne Pallivathuckal in Bangalore; editing by Simon Jessop)