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Regal files bankruptcy
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October 12, 2001: 8:25 a.m. ET
Largest theater chain says no layoffs or closings are seen during reorganization.
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NEW YORK (CNNmoney) - Regal Cinemas Inc., the world's largest movie theater chain, said Friday it is filing for bankruptcy protection that will leave its senior debt holders in control of the company.
The bankruptcy filing had been widely expected and is the second major filing this year in the industry. Loews Cineplex Entertainment Corp., the No. 3 theater chain after Regal and AMC Entertainment Inc. (AEN: Research, Estimates), filed for protection earlier this year as part of a plan to be acquired by Canada's Onex Corp.
Privately-held Regal currently is owned by investment firms Kohlberg Kravis Roberts and Hicks Muse Tate & Furst. Financier Philip Anschutz, who gained control of United Artists Theatre Circuit after its 2000 bankruptcy filing, bought about $425 million of Regal's debt since last year and likely will control Regal after the reorganization, according to research firm Hoover's.
Knoxville, Tenn.-based Regal's statement said terms of its reorganization plan were accepted by holders of more than 95 percent of subordinated bonds and other general unsecured creditors, including suppliers, who voted on the plan. Plans for the bankruptcy filing were announced Sept. 6, and the company's filing asks for a hearing to confirm the plan be set for Dec. 7.
The company does not see any theater closings or layoffs during the reorganization plan, which is expected to last 60 to 90 days.
"With our current liquidity and the protections provided by the bankruptcy code...we are confident we will have adequate financial resources to continue to operate uninterrupted during the brief course of our Chapter 11 cases," Regal CEO Michael Campbell said. "We anticipate that the vast majority of the studios and distributors, as well as our vendors, will recognize the value of doing business with us long term."
Regal Cinemas operates 3,831 screens at 328 theaters. 
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