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» Film-Tech Forum   » Operations   » Ground Level   » GC admits bankruptcy is option

   
Author Topic: GC admits bankruptcy is option
Scott Madsen
Film Handler

Posts: 58

Registered: Oct 1999


 - posted 09-16-2000 10:18 PM      Profile for Scott Madsen   Email Scott Madsen   Send New Private Message       Edit/Delete Post 
What does everyone think of this?


Thursday September 14, 7:07 pm Eastern Time
GC Cos may seek bankruptcy protection--Harcourt
By Tim McLaughlin

BOSTON, Sept 14 (Reuters) - Giant textbook publisher Harcourt General Inc (NYSE:H - news) said in a U.S. regulatory filing on Thursday that GC Companies Inc GCX.N, the operator of General Cinema Theatres, may have to seek bankruptcy protection unless it wins concessions from creditors.

Chestnut Hill, Mass.-based Harcourt said it carries a secondary liability on GC Companies' estimated $355 million in future rental payments due under theatre leases. GC Companies, also based in Chestnut Hill, Mass., operates more than 1,000 U.S. movie screens.

A GC Companies official did not return a call seeking comment. The company last made an announcement on Aug. 21, when the company reported a $10.1 million loss for the third quarter, ended July 31, on revenue of $108.6 million.

Unless GC Companies is able to reach a deal with creditors it may need to explore several alternatives, including selling assets or filing for bankruptcy protection, according to Harcourt's most recent filing with the U.S. Securities and Exchange Commission.

The warning comes as cinema operators throughout the United States have been rocked with loan defaults and bankruptcy filings, as the cost of building stadium-style megaplexes spirals out of control. Last month,for example, Loews Cineplex Entertainment Corp, (NYSE:LCP - news) the No. 2 movie theatre operator, said it expects to default on a bank loan.

Harcourt spun off its theatre operations to GC Companies in 1993. If GC Companies is unable to reach deals with its creditors, it will not be in compliance on Oct 31 with certain financial covenants contained in creditor agreements, according the SEC filing.

Harcourt said GC Companies' other creditors already have waived some of their financial covenants with the company.

``In light of the foregoing, (Harcourt) anticipates that (GC Companies) may need to actively consider strategic alternatives, including a potential restructuring, recapitalization, bankruptcy organisation or the sale of certain assets,'' Harcourt said in the filing.

The publisher said it cannot currently estimate its exposure under the theatre leases.

``However, based on a number of factors, the company believes that its ultimate liability will be significantly less than the aggregate future rental payments'' of $355 million, the company said.

Shares of GC Companies have plunged nearly 80 percent in recent months, from more than $35 to a Thursday close of $8-3/4 on the New York Stock Exchange. Harcourt closed at $60-15/16 down 12/16 also on the New York Stock Exchange.


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Brad Miller
Administrator

Posts: 17687
From: Plano, TX (36.2 miles NW of Rockwall)
Registered: May 99


 - posted 09-16-2000 10:52 PM      Profile for Brad Miller   Author's Homepage   Email Brad Miller       Edit/Delete Post 
Sounds like they're joining the club.

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Gordon McLeod
Film God

Posts: 9460
From: Toronto Ontario Canada
Registered: Jun 99


 - posted 09-17-2000 02:15 PM      Profile for Gordon McLeod   Email Gordon McLeod   Send New Private Message       Edit/Delete Post 
Well it is probably due to the high cost of there "reference sound systems"

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Marc Jones
Film Handler

Posts: 82
From: Elizabethtown, KY
Registered: Jun 99


 - posted 09-17-2000 05:15 PM      Profile for Marc Jones   Email Marc Jones   Send New Private Message       Edit/Delete Post 
Reference Sound System ?
Whats that

Marc Jones

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Ken Layton
Phenomenal Film Handler

Posts: 1452
From: Olympia, Wash. USA
Registered: Sep 1999


 - posted 09-19-2000 08:26 AM      Profile for Ken Layton   Email Ken Layton   Send New Private Message       Edit/Delete Post 
VARIETY has a story today that GCC has filed chapter 11.
www.variety.com

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Tim Reed
Better Projection Pays

Posts: 5244
From: Northampton, PA
Registered: Sep 1999


 - posted 09-19-2000 02:12 PM      Profile for Tim Reed   Author's Homepage     Send New Private Message       Edit/Delete Post 
Forget it... you have to subscribe to VARIETY to read it!! The headline says they're "weighing" Chap. 11..

------------------
Better Projection Pays!


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John Scott
Master Film Handler

Posts: 252
From: Oakdale, MN, USA
Registered: Jul 2000


 - posted 09-20-2000 12:31 AM      Profile for John Scott   Email John Scott   Send New Private Message       Edit/Delete Post 
Well in Milwaukee they announced that they will be closing their Premium Luxury Cinema (2 screens of their 18 screen complex).

Anyone hear if they are closing Premium screens anywhere else?

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Ken Layton
Phenomenal Film Handler

Posts: 1452
From: Olympia, Wash. USA
Registered: Sep 1999


 - posted 10-05-2000 08:03 AM      Profile for Ken Layton   Email Ken Layton   Send New Private Message       Edit/Delete Post 
The Tacoma News Tribune did a story yesterday that General Cinemas is closing the Lincoln Plaza 8 in Tacoma, Washington today. Last Thursday they closed their Gateway Center 8 in Federal Way, Wash.

It's a pity, the Lincoln Plaza was a nice theater with a THX house. The theater was only 6 years old.


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Kevin Crawford
Expert Film Handler

Posts: 207
From: Sacramento, CA, USA
Registered: May 2000


 - posted 10-06-2000 10:51 PM      Profile for Kevin Crawford   Email Kevin Crawford   Send New Private Message       Edit/Delete Post 
GCC wants out of Washington, so if it did not make money they will close it.

I think that they closed it a week later because they only have so many people to close these theatres at one time. If there are any more questionable theatres up there, expect them to close soon as well.

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John Anastasio
Master Film Handler

Posts: 325
From: Trenton, NJ, USA
Registered: Sep 2000


 - posted 10-09-2000 09:17 PM      Profile for John Anastasio   Author's Homepage   Email John Anastasio   Send New Private Message       Edit/Delete Post 
GCC just closed its complex in Lawrenceville, NJ over the weekend. With AMC's new 24plex only three miles down the road, their crummy little breadboxes didn't stand a chance. My guess is that the Destinta in Hamilton is next on the chopping block. Their showings are pitiful and I don't think I've ever seen more than 100 people in any of their auditoriums. AMC, on the other hand has frequent sellouts.

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Scott Madsen
Film Handler

Posts: 58

Registered: Oct 1999


 - posted 10-11-2000 04:00 PM      Profile for Scott Madsen   Email Scott Madsen   Send New Private Message       Edit/Delete Post 
Well, it's more than a thought now. They made the official Chapter 11 filing today.



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