What does it mean that The Weinstein Company (“TWC”) filed for Chapter 11 bankruptcy?
Chapter 11 bankruptcy is commonly referred to as a “reorganization” or a “structured liquidation” bankruptcy, where a company that cannot pay its debts as they come due may file a petition with a federal bankruptcy court (for more general information on Chapter 11 bankruptcy, visit the U.S. Courts website). TWC filed a petition for Chapter 11 bankruptcy protection on March 19, 2018.
I am a performer who worked on a project involving TWC. What is SAG-AFTRA doing to protect my residuals?
Through our Residuals Claims and Legal Departments, Financial Assurances Program, and external legal counsel, SAG-AFTRA is exploring all available strategies to protect members’ residuals and pension and health plan contributions that are due now and in the future.
SAG-AFTRA — jointly with the Directors Guild of America (DGA), Writers Guild of America (WGA), the union pension and health plans, and the Motion Picture Industry Pension and Health Plans — have appeared in the U.S. Bankruptcy Court in Delaware and are actively participating in the case to advance collective bargaining agreement interests, preserve our claims, and seek residuals payments on behalf of our members. We continue to participate in the bankruptcy proceedings as the case moves forward.
Also, in case you missed our recent announcement, we encourage members to immediately cash any outstanding checks from work performed on any TWC-related titles.
What if I am owed payment from TWC that is not related to residuals?
While SAG-AFTRA is working diligently on behalf of our members to enforce the terms of our collective bargaining agreements, performers may have TWC-related rights or benefits arising outside of the collective bargaining relationship, which are outside the scope of our representation in this matter (e.g. personal services agreements). We encourage our members to speak directly with their managers, agents, and/or independent legal counsel in order to determine the best course of action for any such non-collectively bargained entitlements.
What does it mean if I received a notice from the bankruptcy court?
Many performers who have direct agreements with TWC may receive notices from the bankruptcy court. Recently, such notices could have included a notice to assume and assign executory contracts. These notices are triggered by various developments in the case, including a proposed sale of TWC assets to a third-party company. TWC could include any existing executory contracts in the sale and assign such agreements to the buyer. This process is subject to the objections of interested parties and approval by the Court. We encourage our members to speak with their managers, agents, and/or independent legal counsel in order to determine the best course of action in response to this notice.
If you have any other questions, please contact us at:
Residuals Claims Department: (323) 549-6507
Legal Department: (323) 549-6627