Loews high on plan

Circuit asks court to OK $4.4 mil in staff bonuses

HOLLYWOOD — Loews Cineplex, caught in a months-long bankruptcy reorg, Wednesday asked a court to approve $4.4 million in bonuses for 78 senior employees.

The New York-based circuit, with more than 2,400 screens the nation’s second largest after Regal Cinemas, said it will file a formal restructuring plan soon. But Loews also persuaded U.S. Bankruptcy Court in Manhattan to approve an extension until February of its exclusive right to hash out a reorg plan.

Canadian conglom Onex and L.A. buyout firm Oaktree Capital have agreed to partner on an $850 million restructuring of the circuit. But wrangling with creditors continues over terms of the offer.

In court filings, Loews said uncertainty “resulting from the plan process” has proved disruptive for exhib’s personnel, with 38 employees having resigned since the bankruptcy filing.

Paying out

Under the proposed bonus plan, nine senior officers would get lump-sum bonuses worth almost 67% of their annual base salaries, and bonuses equal to one-third of salary would be extended to 21 officers of VP rank and higher. Forty-eight others would get bonuses capped at 25% of annual salary.

The bonuses would be contingent on staying with Loews through its reorg and the circuit’s meeting certain earnings targets. The court set an Oct. 23 hearing to consider the proposal.

(Bloomberg News contributed to this report.)

More Biz

  • Kevin Durant Rich Kleiman

    Kevin Durant Shares His Media Biz Playbook at Variety Sports & Entertainment Breakfast

    HOLLYWOOD — Loews Cineplex, caught in a months-long bankruptcy reorg, Wednesday asked a court to approve $4.4 million in bonuses for 78 senior employees. The New York-based circuit, with more than 2,400 screens the nation’s second largest after Regal Cinemas, said it will file a formal restructuring plan soon. But Loews also persuaded U.S. Bankruptcy […]

  • David-Zaslav-Discovery Sun Valley Conference

    A Look at Key Trends Facing Media and Tech Companies Ahead of Q2 Earnings

    HOLLYWOOD — Loews Cineplex, caught in a months-long bankruptcy reorg, Wednesday asked a court to approve $4.4 million in bonuses for 78 senior employees. The New York-based circuit, with more than 2,400 screens the nation’s second largest after Regal Cinemas, said it will file a formal restructuring plan soon. But Loews also persuaded U.S. Bankruptcy […]

  • Spotify logo is presented on a

    Spotify Launches Feature to Help Artists, Labels Submit Music to Playlists

    HOLLYWOOD — Loews Cineplex, caught in a months-long bankruptcy reorg, Wednesday asked a court to approve $4.4 million in bonuses for 78 senior employees. The New York-based circuit, with more than 2,400 screens the nation’s second largest after Regal Cinemas, said it will file a formal restructuring plan soon. But Loews also persuaded U.S. Bankruptcy […]

  • Comcast

    Comcast Drops Out of Bidding War With Disney for 21st Century Fox Assets to Focus on Sky

    HOLLYWOOD — Loews Cineplex, caught in a months-long bankruptcy reorg, Wednesday asked a court to approve $4.4 million in bonuses for 78 senior employees. The New York-based circuit, with more than 2,400 screens the nation’s second largest after Regal Cinemas, said it will file a formal restructuring plan soon. But Loews also persuaded U.S. Bankruptcy […]

  • The Bureau French TV Show

    French Firm Federation Steps Into the U.S. Market

    HOLLYWOOD — Loews Cineplex, caught in a months-long bankruptcy reorg, Wednesday asked a court to approve $4.4 million in bonuses for 78 senior employees. The New York-based circuit, with more than 2,400 screens the nation’s second largest after Regal Cinemas, said it will file a formal restructuring plan soon. But Loews also persuaded U.S. Bankruptcy […]

More From Our Brands

Access exclusive content