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.