UPDATE 1-Maria Contreras-Sweet says drops deal to buy Weinstein Co

(Adds background, Weinstein Co disclosure)

March 6 (Reuters) - Maria Contreras-Sweet said in a statement on Tuesday that her group was pulling out of its offer to buy The Weinstein Co.

The deal was terminated after it was discovered that the company's debt was $280 million rather than the $225 million previously disclosed, a source familiar with the matter told Reuters.

"After signing and entering into the confirmatory diligence phase, we have received disappointing information about the viability of completing this transaction," Contreras-Sweet said in the statement.

The former Obama administration official said last week that the group had reached an agreement with the New York State Attorney General's office to buy assets from The Weinstein Company to launch a new firm.

Contreras-Sweet, The Weinstein Co and New York Attorney General Eric Schneiderman had said they worked together to bring about the deal.

Schneiderman said last week that he had received commitments that a well-funded victims compensation fund would be created, that new policies would protect employees in the new company and that "bad actors" would not be unjustly rewarded.

The studio nearly went bankrupt after more than 70 women accused co-founder Harvey Weinstein, then one of Hollywood's most influential men, of sexual misconduct. Weinstein has denied having non-consensual sex with anyone.

The Weinstein Co could not be immediately reached for comment.

The New York Times first reported in October that multiple women had accused Weinstein of sexual misconduct. Reuters has not been able to independently confirm the allegations. (Reporting by Sangameswaran S in Bengaluru and Greg Roumeliotis in New York Editing by Tom Brown)