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.
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