No. 49: Loews Cineplex

New York

Revenue: $903.5 million

Loss: $436.2 million

Exhibitor Loews Cineplex has modest corporate goals for the immediate future, and getting out of bankruptcy court is one of them.

But if the end game is simple, there are still a couple of twists in the road ahead. An investors group featuring Canadian conglomerate Onex and Los Angeles buyout firm Oaktree Capital has offered to buy the New York-based circuit for about $100 million in new capital plus some debt assumption totaling $750 million.

But the group has yet to nail down definitive terms of its offer, and some creditors have made it clear they want to find another way of reorganizing the company. Many believe the company ultimately may go to another bidder, though Onex topper Gerald Schwartz vows to see through its proposal.

“We are excited about the opportunity,” Schwartz has said.

Loews, which operates some 2,500 screens in the U.S. and Canada, plans to close up to 25% of its properties to stanch rampant red ink. Its bankruptcy reorganization filing, like 10 others affecting an assortment of U.S. screen circuits, was prompted by an industrywide building binge that left Loews and others with big debt loads even as heightened competish cut into revenue.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety