Jerry Weintraub Quits His Firm, Joins Warner

Jerry Weintraub resigned Monday as chairman and chief executive of Weintraub Entertainment Group, which has sought protection in bankruptcy court, to produce movies for Warner Bros.

The resignation appears to leave Kenneth Kleinberg, Weintraub Entertainment’s president, as the company’s top-ranking officer. But it wasn’t immediately clear whether Kleinberg, 47, would assume the chief executive’s post.

At least one Weintraub Entertainment bondholder said he believed that Kleinberg, a longtime entertainment attorney, would leave the independent film studio. “I think Kleinberg’s going to resign too,” the bondholder said. Kleinberg didn’t return a call to his office, and Weintraub declined to be interviewed.

Weintraub, 52, produced the major hit “Oh, God” for Warner Bros. before forming his ill-starred independent company in 1987. In a statement, Warner Bros. Chairman Robert Daly and President Terry Semel said: “(Jerry Weintraub’s) creativity as a producer, along with his broad-ranging relationships with key members of our creative community, make us happy to welcome him into the Warner family.”

Weintraub’s resignation follows a tug of war among Weintraub Entertainment creditors over his services. Some creditors had argued that Weintraub should remain with the company while seeking to associate it with Warner under a deal that might provide some payoff to creditors from his future productions.

Others, who ultimately prevailed, argued that Weintraub Entertainment might fare better under new leadership. “Jerry originally wanted to do this through the company, and I think that would have been a good thing. . . . Unfortunately, there were creditors who didn’t want it,” a person familiar with the situation said.

Weintraub Entertainment, which owes about $175 million to its banks and bondholders, filed earlier this month for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code and has been trying to reorganize.

In addition to “Oh, God,” Weintraub scored hits with “The Karate Kid” for Columbia, “Diner” for MGM/UA and “Nashville” for Paramount.

But that golden touch never materialized at the Weintraub company, which lost millions of dollars on “My Stepmother Is an Alien,” “Listen to Me,” “Troop Beverly Hills” and other films.

Under the deal with Warner Bros., a unit of Time Warner Inc., the studio will provide Weintraub with staff, office space and film development funds. Weintraub Entertainment remains attached to Columbia Pictures under an overall distribution agreement for its films.