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Edwards Plans to Ax 28 Theaters

ORANGE COUNTY, CA-Most of bankrupt theater chain's screens are in shopping centers, leaving mall owners worried that they won't get paid.

By David W. Myers | Updated on August 28, 2000

ORANGE COUNTY, CA-Edwards Theatres Circuit Inc., the movie-house chain that filed for bankruptcy protection last Wednesday, has now identified at least 28 theaters it will likely close or give up. Its Orange County home would be hardest hit, losing at least six.

Many of the theaters are located in shopping centers, which means owners of the affected developments must now hope to get paid as the bankruptcy proceedings progress. But their chances of collecting payment may be hurt by several factors, including a provision in the bankruptcy law that generally permits a debtor to reject leases it has signed and pay only a fraction of what is owed on the remainder of the rental agreements.

When the Newport Beach-based firm filed in U.S. Bankruptcy Court in Santa Ana earlier in the week, it said it ended 1999 with a net loss of $40 million on revenue of $299 million.

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