<< Read Full Article

Who Says Summer's Good for Theater Operators?

 

The movie exhibition business took another body blow on Friday, when Loews Cineplex Entertainment (LCP Quote), the nation's second-biggest theater operator, warned that its second-quarter earnings would fall short of last year's and that it might not be able to comply with covenants on its principal bank loans. Investors pummeled the stock Monday, pushing it down 88 cents, or 30%, to 2.06.

The bad news from Loews is only the most recent in a string for the theater-operator sector. Last week, closely held Edwards Theatres Circuit confirmed that it seeking Chapter 11 bankruptcy protection, two weeks after Carmike Cinemas (CKE Quote) in Columbus, Ga., said it is doing the same. (On Friday, the New York Stock Exchange said it completed its review of the continued listing status of Carmike and decided the company's stock will resume trading under the ticker symbol QCKE. The Q denotes bankruptcy.)

Earlier this month, closely held Regal Cinemas, the biggest theater company, said it is in talks to avoid breaching its own loan covenants. Denver-based United Artists Theatre, also privately held, is talking to its bankers regarding declaring voluntary Chapter 11 bankruptcy as part of a restructuring.

Dark Days in the Theater
Loews Cineplex, Carmike plunge
...

<< Read Full Article

Recent Comments

Loading .....




Dow Jones S&P 500 NASDAQ 10-Year Note
10,450.27 1,108.32 2,184.09 33.10
Oil *
77.93
DOWN
21.31
DOWN
0.54
UP
8.28
UP
0.35
10 Yr
3.31%
SPDR Gold
118.92
-0.20%
-0.05%
+0.38%
+1.07%
Data delayed 20 minutes

Brokerage Partners

TheStreet Premium Services

All Services