Attorneys challenge Weinstein Co. bankruptcy plan approval

Four women who have accused disgraced film mogul Harvey Weinstein of sexual misconduct are appealing a Delaware judge’s approval of the Weinstein Co.’s bankruptcy plan

They also filed an emergency motion in bankruptcy court asking that the judge stay implementation of her plan confirmation order pending the appeal.

The reorganization plan would provide about $35 million for creditors. That’s about $11.5 million less than under a previous plan, which was scrapped after a federal judge in New York refused to approve a proposed $19 million settlement between Weinstein and some of his accusers. The settlement in that purported class-action lawsuit was a key component of the initial bankruptcy plan.

Roughly half of the approved settlement, about $17 million, is allocated for a single sexual misconduct claims fund, down from about $25.7 million allocated for three separate categories of sexual misconduct claims under the previous plan. Another $8.4 million would go to a liquidation trust for resolving non-sexual misconduct claims, and $9.7 million would be used to reimburse defense costs for former company officials other than Weinstein. The plan also releases those officials from liability for tort claims related to Weinstein’s conduct.

Holders of sexual misconduct claims will receive 100% of the liquidated value of their claims if they agree to release Weinstein from all legal claims. A claimant who elects not to release Weinstein but to retain the option to sue him in another court would receive 25% of the value of her bankruptcy claim.

Attorneys for the objectors say the plan includes overly broad releases from liability for third parties such as insurance companies and former Weinstein Co. officers and directors. They also argue that it contains a provision that unfairly prevents non-consenting sexual misconduct claimants from pursuing their claims.