AMC Entertainment agrees to buy General Cinema screens; deal subject to court approval
Friday, December 7th 2001, 12:00 am
By: News On 6
NEWTON, Mass. (AP) _ AMC Entertainment said Friday that it has agreed to buy General Cinema as part of that company's Chapter 11 reorganization plan.
Under the agreement, AMC would pay GC Companies Inc.'s creditors an estimated $175 million to $195 million in cash and stock. The final amount depends on a bankruptcy court's determination of claim amounts.
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 before it filed for bankruptcy protection last year.
United Artists Theater Co., Edwards Cinemas, Carmike Cinemas and General Cinema have all filed for bankruptcy in the last two years as the industry suffered from overbuilding and a drought of hit movies.