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Archive for Saturday, December 8, 2001

KC’s AMC to buy bankrupt cinemas

December 8, 2001

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— AMC Entertainment Inc., one of the survivors after a wave of cinema chain bankruptcies in recent years, has agreed to buy General Cinema as part of that company's Chapter 11 reorganization plan.

Under the agreement, AMC would pay Newton-based GC Companies Inc.'s creditors an estimated $175 million to $195 million in cash and AMC notes and stock. The final amount depends on a bankruptcy court's determination of claim amounts.

Kansas City, Mo.-based AMC operates 177 cinemas with 2,836 screens worldwide. The deal, which requires bankruptcy court approval, would expand those totals with GC's 73 theaters with 677 screens and a 50 percent stake in 17 theaters with 160 screens.

GC operated 1,070 screens when it filed for bankruptcy protection in October 2000, but has since reduced that number by more than a third as it retrenched to its base in the Northeast and Midwest.

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