You will be redirected back to your article in seconds

Loews warns Street it expects to default

2nd-qtr. revenue, cash flow lower, net losses higher, exhib says

NEW YORK — As the tale of exhib woes continues, theater chain Loews Cineplex Entertainment warned Wall Street on Friday that it expects to default on its senior credit facility at the end of the month.

Revenue and cash flow for the second quarter ending in August will be considerably lower and the net losses higher than in the year-earlier period, Loews said. That means the company won’t be able to comply with certain covenants of its bank credit facility and will need to renegotiate new terms or obtain a waiver.

CEO Lawrence Ruisi cited the “disappointing” performance of summertime product, unfavorable product allocation at Loews’ Canadian locations and continued decay at its older theaters — the result of heightened competition from newer megaplexes.

The New York-based chain, he said, is in discussions with its banking group regarding modifications to certain covenants and also pursuing alternatives like sale/leaseback transactions and equity infusions that will help it meet its covenants in going forward.

Loews Cineplex has 2,967 screens in 385 locations primarily in the U.S., Canada and Europe.

Wall Streeters said that Loews still has more cash on hand than some of its competitors but noted that the company was a bit behind the curve in its megaplex building, so fewer of its theaters have stadium seating and other amenities offered by its competitors.

More Biz

  • Beth MatthewsASCAP Pop Awards, Show, Los

    ASCAP Distributes $1 Billion to Members for the First Time

    NEW YORK — As the tale of exhib woes continues, theater chain Loews Cineplex Entertainment warned Wall Street on Friday that it expects to default on its senior credit facility at the end of the month. Revenue and cash flow for the second quarter ending in August will be considerably lower and the net losses […]

  • Directv Latin America - Vrio

    AT&T Cancels IPO for DirecTV Latin America Unit

    NEW YORK — As the tale of exhib woes continues, theater chain Loews Cineplex Entertainment warned Wall Street on Friday that it expects to default on its senior credit facility at the end of the month. Revenue and cash flow for the second quarter ending in August will be considerably lower and the net losses […]

  • MedMen Marijuana Dispensary

    Can Capitalism Find High Times as California Embraces Pot?

    NEW YORK — As the tale of exhib woes continues, theater chain Loews Cineplex Entertainment warned Wall Street on Friday that it expects to default on its senior credit facility at the end of the month. Revenue and cash flow for the second quarter ending in August will be considerably lower and the net losses […]

  • Bill Cosby

    Key Defense Witness Takes Stand at Bill Cosby Retrial

    NEW YORK — As the tale of exhib woes continues, theater chain Loews Cineplex Entertainment warned Wall Street on Friday that it expects to default on its senior credit facility at the end of the month. Revenue and cash flow for the second quarter ending in August will be considerably lower and the net losses […]

  • Teamsters' Seniority System Not a Good

    Teamsters' Seniority System May Not Work Well for Other Crafts, Guilds

    NEW YORK — As the tale of exhib woes continues, theater chain Loews Cineplex Entertainment warned Wall Street on Friday that it expects to default on its senior credit facility at the end of the month. Revenue and cash flow for the second quarter ending in August will be considerably lower and the net losses […]

More From Our Brands

Access exclusive content