Tuesday, July 24, 2001
Irell & Manella Announces Reorganization Plan for Theater
By a MetNews Staff Writer
After weeks of work, the law firm of Irell & Manella yesterday announced it has successfully negotiated a consensual reorganization plan in the Edwards Theater bankruptcy case.
Representing the Official Creditors’ Committee for the Edwards Theaters Circuit, Inc. and its 58 affiliates in the theater chain’s bankruptcy cases, the firm negotiated the plan with the theater chain and its investors, Phillip Anschutz and Oaktree Capital.
Rejecting an original reorganization plan presented by Edwards, which would have forced all of the unsecured claims to share a pot of money, the newly negotiated plan has no limit on the amount of unsecured claims that may be paid, Irell & Manella partner Jeffrey Reisner said.
Under the plan, creditors can choose to either accept a cash payment of 90 percent of the claim or to receive payment of the claim in full, with interest, over time.
Reisner, along with fellow partner William Lobel, associate Tavi Flanagan, and colleagues Roy Geiger, John Fossum, Jonathan Lindsay, and Elizabeth Penfil assisted in the representation.
Newport-based Edwards Theaters is one of the largest motion picture operations in the U.S. with approximately 70 theaters, 736 movie screens, and 3,700 employees throughout California, Idaho, and Texas.
The theater chain is currently operating in excess of 50 theaters, Reisner said.
Copyright 2001, Metropolitan News Company