History[edit]

Weintraub Entertainment Group was formed on July 1, 1986 by Jerry Weintraub.^[3] In February 1987, WEG received $461 million in financing from Columbia Pictures, Cineplex Odeon and others in the form of securities, bank loans and advances.^[1] The Coca-Cola Company and US Tobacco Company were principal investors.^[3] WEG also arranged a $145-million, 7-year credit line with the Bank of America. WEG also signed a 20-year distribution deal with Columbia and planned to release seven or eight movies per year.^[1]


In March 1987, WEG signed its first production and distribution deal, a three-year agreement with Robert Stigwood's RSO Films for multiple films budgeted in the $12-million to $15-million range.^[5] With Stigwood's partnership, WEG was to finance a film version of Evita with Oliver Stone as writer/director and Meryl Streep as Eva Perón. However, the studio dropped the project.^[6]


WEG purchased from The Cannon Group in May 1987 its 2,000-title British film library,^[7] the Thorn-EMI Screen Entertainment library, for $85 million with $50 million from a loan.^[1] On July 20, Harry Usher joined the Group as President of the Weintraub International Enterprises division and as a senior vice president.^[8]


In January 1988, Barney Rosenzweig was hired as chairman of the television unit, corporate vice president and a member of the executive committee.^[9] In July, the Bank of America terminated its credit line with Weintraub after difficulties in syndicating parts of the loan to other banks due to the Thorn-EMI loan.^[1] The Group's first release was The Big Blue in August; it grossed $1.6 million the opening weekend.^[10]


In January 1989, Usher left his position as President of the Weintraub International Enterprises.^[11] The Bank of America and WEG established a new credit line for two years and $95 million with Credit Lyonnais participating.^[1]


In 1989, as a result of Sony/Columbia hiring Peter Guber and Jon Peters away from Warner Bros., Sony/Columbia traded its 15% share in WEG.^[4]


In September 1990, WEG filed for Chapter 11 bankruptcy. Later that month, Jerry Weintraub left the company and forged a deal with Warner Bros., while Columbia still remained indebted to releasing WEG films.^[12]


Film Asset Holding Co., a company formed by WEG's two primary bank creditors, sued Weintraub over his structuring of a sale of the Peter Pan story to Sony Pictures Entertainment in the fall of 1990. Weintraub and Film Assets settled in January 1992.^[13]


In August 1998, a jury verdict for $7 million was lost by Bear Stearns Cos. to investors who had been misled by the brokerage's $83 million bond issue prospectus for the now-bankrupt Weintraub Entertainment Group.^[14]