Regal Cinemas files prepackaged Chapter 11 after creditors back plan

New York, Oct. 12 - Regal Cinemas, Inc. said it filed for Chapter 11 bankruptcy protection after a prepackaged restructuring plans was accepted by subordinated bondholders and other general unsecured creditors.

The Knoville, Tenn. movie theater operator said the reorganization proposal was accepted by holders of more than 95% of the principal amount of its subordinated bonds and by other general unsecured creditors, including suppliers, who voted on the plan

Regal said it had asked the U.S. Bankruptcy Court for the Middle District of Tennessee in Nashville for a hearing to confirm the plan on Dec. 7.

Under the proposed restructuring, some senior bank debt holders will receive accrued interest and 100% of the common stock of the reorganized Regal, subject to dilution by a new management incentive plan. They will also receive costs and expenses. Other bank debt holders will be paid in full with interest.

Holders of the subordinated notes will receive cash totaling $181,031,250.

General unsecured creditors with claims over $5,000 will receive cash up to $75 million, which the company estimates will give them full recover. Claims of $5,000 and less will be paid in full with interest.

Regal asked for creditors' support for its plan in a solicitation that began Sept. 6.

"Today's action will not only provide the greatest recovery for our creditors, but also presents the most effective means to restructure Regal's indebtedness and create a capital structure that will enable Regal to maintain its premier position in the film exhibition industry," said Regal chairman and chief executive officer Michael L. Campbell in a news release. He added that neither employees nor moviegoers will see any difference in operations.

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