Anschutz Gains United Artists Chain

Tuesday, January 23rd 2001, 12:00 am

By: News On 6

ENGLEWOOD, Colo. (AP) â€” Telecommunications and railroad magnate Philip Anschutz has won control of United Artists Theater Circuit, the nation's sixth-largest movie theater chain, which is one among a string of cinema operators to file for bankruptcy protection to escape choking debts.

The Englewood-based corporation's reorganization plan giving Anschutz control was approved by a federal bankruptcy judge in Delaware on Monday.

Two weeks ago the privately held Anschutz Corp. of Denver and Los Angeles-based Oaktree Capital Management bought $350 million of the $1 billion debt of the nation's largest movie theater chain, Regal Cinemas.

Industry analysts say that if Anschutz gains control of Regal it would make sense to merge it with United Artists, creating a blockbuster movie company twice as big as the nearest competitor.

While Anschutz is the largest single owner of Knoxville, Tenn.-based Regal, its bankers have not agreed at this point to allow Anschutz to take control.

United Artists owns 1,604 screens nationwide, including the Pavilions, Continental and Denver West theaters in Denver. Regal owns 4,332 screens nationwide.

The past year was tough for the industry. United Artists Theater Co., Edwards Cinemas, Carmike Cinemas and General Cinemas filed for bankruptcy.

Financially strapped Loews Cineplex Entertainment Corp. announced plans Tuesday to close 112 aging movie venues in the U.S. and Canada, turning about 675 screens dark. That represents nearly 23 percent of its screens worldwide.

There were no objections at the brief bankruptcy hearing for United Artists on Monday. Anschutz can take control after 10 days, said Kurt Hall, president of United Artists.

One of the main reasons for the bankruptcy was for the company to get out of expensive leases. The bankruptcy reduces United Artists debt by more than $500 million. This will allow the company to start experiencing positive cash flow, Hall said.

``I think we've got a great opportunity here,'' Hall said. ``We have a very good capital structure. What will emerge is a company with good, strong support that will provide a great opportunity going forward.''