Denver billionaire Philip Anschutz, the sixth-richest person in the country, heads the Anschutz Corp. Anschutz quickly is taking control of more movie theaters than anyone else in the country.
The Anschutz Corp. and a fund managed by Oaktree Capital Management LLC will make a significant investment in the recapitalization of the Edwards chain. Oaktree had joined Anschutz in an earlier deal to buy about $345 million in debt from the Regal Theatre chain, the largest in the nation. Anschutz also has taken control of Denver-based United Artists Corp., the sixth-largest movie theater chain.
Terms of the proposed deal with the Edwards chain have not been disclosed. Edwards' President Stephen Coffey says that he expects a definitive agreement to be completed within the coming weeks.
He notes that Edwards' management has participated in preliminary meetings with its bank group and unsecured creditors committee. He hopes to reach agreement on a consensual plan of reorganization that will pave the way for consummation ofthe recapitalization transaction and Edwards' successful emergence from Chapter 11.
"Since our voluntary Chapter 11 filing in August 2000, management and the board of directors have been exploring various alternatives that would result in maximum recovery to our creditors, ensure the company's continued viability and provide it with greater access to the financial resources it needs to compete successfully in today's exhibition industry," Coffey says. "We believe that the transaction we announced today is in the best interests of Edwards' creditors, employees, guests and other constituents."
Edwards Theatres Circuit, Inc. and certain of its affiliates had filed voluntary petitions for Chapter 11 reorganization in the US Bankruptcy Court in Santa Ana, CA on Aug. 23, 2000. Headquartered in Newport Beach, CA, the company currently operates 63 theaters in Southern California, Idaho and Houston areas, including Edwards IMAX Theatres and Edwards Cinematique.
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