A group led by Contreras-Sweet and including Soho House's billionaire backer Ron Burkle will pay $500m (£363m) for the company's assets, including $90m towards a victims' compensation fund.
At the time Contreras-Sweet issued her statement, a fleet of lawyers for both sides were still hammering out the final details.
On Sunday, the company complained that Contreras-Sweet's group had neither kept its side of the bargain on Schneiderman's principles nor paid interim funding required to run the business and maintain employees before the buyout was finalized.
The company last month was close to inking a deal for more than US$500 million to be taken over by investors led by Contreras-Sweet and Burkle.
Rocky negotiations had gone on for weeks between the investment group and the Weinstein Co., which has been in turmoil over accusations against Harvey Weinstein of sexual misconduct, including rape, by more than 50 women.
The lawsuit launched three weeks of fraught, behind-the scenes talks to revive the sale, with several unreleased films hanging in the balance, including the Thomas Edison tale "The Current War", with Benedict Cumberbatch, and "Mary Magdalene", starring Rooney Mara. The sale deal includes a commitment from the buyers to establish a compensation fund of up to $90-million for Weinstein's accusers.
Around 9:30 p.m., Schneiderman said there was an agreement.
The next chapter of The Weinstein Company's legacy will likely now be a name change. But Schneiderman objected to the deal out of concerns that there insufficient documentation guaranteeing compensation for the victims.
The news caps a dramatic turnaround after the TWC board announced this past Monday that the deal had collapsed and they were going to file for bankruptcy due to having "no choice". Those in attendance included Contreras-Sweet, Burkle, Bob Weinstein, Schneiderman and TWC board member Lance Maerov, according to sources.
"This next step represents the best possible pathway to support victims and protect employees", Conteras-Sweet said on Thursday.
Maria Contreras-Sweet said the deal had been reached with the NY state attorney general's office, which last month sued The Weinstein Company fearing that its imminent sale could leave his alleged victims without adequate redress.
Schneiderman said in a statement, "As part of these negotiations, we are pleased to have received express commitments from the parties that the new company will create a real, well-funded victims compensation fund, implement HR policies that will protect all employees, and will not unjustly reward bad actors". In other words, the suit against Harvey and Bob Weinstein will continue even if the suit against the studio is resolved. "We are grateful to our investors who have believed in this process and in the compelling value of a female-led company".
The announcement followed a statement earlier Thursday by Contreras-Sweet - who is best known for running the Small Business Administration under President Obama - indicating that the deal would be salvaged and her new company would be "led by a board of directors made up of a majority of independent women".