''I'm not at all thrilled with the second quarter,'' Hall told GlobeSt.com. ''The second quarter started out OK, and then we got hit in the head by June. June was just a really bad film month. If you look at the releases (on operating results) from all our other competitors, they all went through the same thing.''

Revenues in the second quarter dropped by 17.3% to $138.6 million from $167.5 million a year ago. One bright spot was that in the first half of the year, cash flow or EBITDA (earnings before interest, taxes, depreciation and amortization) decreased only 4%, thanks to improved operating margins. Second-quarter operating losses increased to $21.5 million from $3.8 million, primarily due to savings realized from closing unprofitable theaters and restructuring.

Meanwhile, Hall is continuing to work with senior banking lenders to recapitalize and restructure debt. He also has initiated discussions with a group that has acquired a large part of its subordinated debt. Denver-based Philip Anschutz, the richest man in Colorado and the chairman of Qwest Communications, heads the group. Publicity shy Anschutz and his partners also own a substantial office portfolio in Colorado. In addition, they own the Staples Stadium in Los Angeles, Los Angeles Lakers and Los Angeles Kings hockey team.