Regal Cinemas to File Chapter 11
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Regal Cinemas Inc., the biggest U.S. movie theater chain, said it will file for Chapter 11 bankruptcy protection within six weeks and has asked creditors to endorse a recovery plan in advance of the filing.
Denver billionaire Philip Anschutz and Los Angeles-based investment fund Oaktree Capital Management bought a large stake in Regal’s bank debt earlier this year. If accepted by creditors and a Bankruptcy Court judge, the plan could clear the way for Anschutz and Oaktree to take over the company.
Leveraged buyout firms Kohlberg Kravis Roberts & Co. and Hicks, Muse, Tate & Furst Inc. acquired Knoxville, Tenn.-based Regal two years ago and have been engaged in a battle with Anschutz for control of the company.
Under the new deal, KKR and Hicks Muse would receive nothing but would be free from Regal’s debt.
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