Banner
Home Forums Movie Theaters The Sidewalk Loew's Is Going Down
Welcome, Guest
Username: Password: Remember me
  • Page:
  • 1

TOPIC: Loew's Is Going Down

Loew's Is Going Down 18 Jan 2001 13:52 #19589

  • take2
  • take2's Avatar
  • OFFLINE
  • Gold Boarder
  • Posts: 271
  • Karma: 0
This is an article that came to me through the internet and I thought I'd pass it on to you. I don't think that if we found ourselves in the same situation as the Loew's that our creditors would be as kind.

Struggling exhibitor Loews Cineplex Entertainment, in acknowledging it missed a Jan. 15 deadline for filing fiscal third-quarter financial results, said Wednesday it expects to report within a couple of weeks that revenue for the period dropped 8%.

The New York-based company, whose major stakeholders include Sony and Universal Studios, blamed the delay in a regulatory filing on its ongoing search for a cure to cash and debt woes.

Loews has been granted a temporary waiver of certain loan covenants by its lenders, as the company reviews options, including an infusion of new equity capital or the restructuring of loan-repayment schedules.

Observers also are looking for signs that Loews will file for Chapter 11 bankruptcy reorganization, with its Cineplex Odeon unit believed to be in particular peril of such a filing.

Several other large exhibitors already have sought Chapter 11 protection, as the industry suffers under heavy debt pressures from a recent multiplex building binge.

Analysts expect Loews to report a broadened loss for the three-month period ended Nov. 30. In the same period last year, the circuit saw red ink amounting to 41¢ a share on revenue of $209.2 million.

Loews blamed underperforming movies for downturns in fiscal third quarter and nine-month revenue.

"These decreases were due primarily to a significant decline in attendance at our theaters that resulted from sub-par film product and lower industrywide attendance levels in general," the company said in its filing with the Securities & Exchange Commission.


The administrator has disabled public write access.

Re: Loew's Is Going Down 19 Jan 2001 10:38 #19590

  • GREGBORR
  • GREGBORR's Avatar
  • OFFLINE
  • Gold Boarder
  • Posts: 238
  • Karma: 0
From Boxoffice

New York City-based Loews Cineplex Entertainment appears to be readying itself for bankruptcy, as indicated by its retention of investment bank GE Capital to prepare a debtor-in-possession financial restructuring.

Similar to a Chapter 11 filing, the agreement mandates that the debtor's actions reflect the best interests of its creditors. As was the case with many other domestic exhibitors that have sought bankruptcy protection, Loews is expected to use the filing to exit lease agreements in underperforming theatres.

Adding to the company's difficulties, Loews has had to deal with two major deadlines in the span of 10 days: Having already missed filing its third-quarter fiscal financials with the Securities and Exchange Commission by the January 16 due date, the circuit is also facing a January 26 deadline for a $1 billion payment on its credit facility.

Last Tuesday, a Loews spokesperson mentioned that the company was considering, among many other options, the possibility -- as reported here earlier -- of selling off a number of its Canadian sites as way of raising some much-needed cash. -- Francesca Dinglasan




[This message has been edited by GREGBORR (edited January 19, 2001).]
The administrator has disabled public write access.
  • Page:
  • 1
Time to create page: 0.155 seconds
attraction attraction
attraction
attraction
attraction
attraction