Harvey Weinstein. Photo credit: Shutterstock.com

A Delaware judge has approved The Weinstein Co.'s blueprint for the bidding procedures governing the troubled movie studio's fast-tracked bankruptcy sale.

U.S. Bankruptcy Judge Mary F. Walrath of the District of Delaware on April 6 adopted a plan from The Weinstein Co.'s bankruptcy counsel that set a May 8 hearing date on a final agreement to sell the studio's assets in the expedited Chapter 11 proceedings. According to Walrath's order, bids are due April 30, and an auction among qualified bidders has been scheduled for May 4 in the Wilmington offices of Richards, Layton & Finger.

The Weinstein Co. entered bankruptcy last month with a “stalking horse” agreement to sell its assets to Dallas-based investment firm Lantern Capital Partners for $310 million. The deal, however, is subject to better offers under Section 363 of the U.S. Bankruptcy Code.

The company's Chapter 11 petition listed both assets and liabilities between $500,000 and $1 billion, and subsequent filings have detailed mass defections and millions in lost revenue after damning allegations of sexual misconduct began to surface against Harvey Weinstein, the studio's co-founder and former president.

According to media reports, at least 80 women have so far accused Harvey Weinstein of sexual assault or harassment. The disgraced film producer was ousted from The Weinstein Co. in October, and he has since been expelled from the Academy of Motion Picture Arts and Sciences in the wake of the scandal.

Harvey Weinstein has denied all allegations of nonconsensual sex.

Lantern's offer followed a breakdown in negotiations earlier this month between New York Attorney General Eric Schneiderman and a group of investors, spearheaded by Maria Contreras-Sweet, which had offered to assume $225 million in The Weinstein Co. debt and contribute $275 million to launch a new women-led company. Media reports had indicated that the talks included a settlement fund of up to $90 million to compensate Weinstein's victims.

Under the starting bid from Lantern, lawsuits pending against The Weinstein Co. would be halted, though the women who have sued the studio over Harvey Weinstein's alleged misconduct would be able to pursue their interests on a committee of unsecured creditors in bankruptcy.

However, Lantern could potentially face competition in the bankruptcy proceedings from prospective buyers looking to scoop up The Weinstein Co.'s legacy assets, which include a television business and a library of 277 films.

Walrath said in her order that potential buyers would have until the end of the month to submit their bids, though the deadline could be extended subject to stalking-horse agreement. Qualified bidders would be notified of their status by May 1. The Weinstein Co. is required to publish a sale notice in The Wall Street Journal or USA Today by April 11, and any counterparties must file their objections by April 30, the order said.

Walrath would need to confirm the results of the auction in the hearing, which is scheduled for 11:30 a.m. on May 8.

Walrath's order also approved stalking-horse protections for Lantern, including a 3 percent breakup fee and reimbursement of up to 1.5 percent of the cash purchase price for out-of-pocket costs, fees and expenses. Lantern would be able to petition the court for up to 2 percent reimbursement if the sale hearing does not begin as scheduled on May 8.

Objections to the proposed sale to Lantern are due April 30, and post-auction objections must be filed by May 7.

The Weinstein Co. is represented in the bankruptcy case by attorneys from Richards Layton in Wilmington and Cravath, Swaine & Moore.