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Topic: There goes Loews/Cineplex

Dave Williams
Wet nipple scene

Posts: 1836
From: Salt Lake City, UT, USA
Registered: Jan 2000

posted 03-24-2002 04:03 PM

That is a very good point. The high rents and the landlords that refused to renegotiate had a very high hand in all of this. Most of them now have empty buildings and NO income from them as a result. And to boot we have these vacated and very blighted buildings just sitting there looking as depressing as possible.

Another key issue is the fact that city councils actually ALLOWED the over construction of these theaters by issuing permits to have them built in the first place. Many cities have had as many as three or more megaplexes built within just a couple miles of each other.

There are many issues involved, the 90/10, which hurts small independants, the high rents that keep buildings vacant, crappy product and overpaid superstars, poor presentation and horrible service, underkept facilities and a complete lack of concern on many chains part, all contributed to the downfall.

Dave

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Scott Madsen
Film Handler

Posts: 58

Registered: Oct 1999

posted 04-05-2002 01:19 PM

4/4 Loews Cineplex Entertainment topper Lawrence Ruisi has stepped down from his position with the nation's fourth largest exhibition chain.

Ruisi's announcement comes just weeks after the New York City-based company's emergence from bankruptcy restructuring.

"We just finished the reorganization, which was a very long and difficult process," remarked Ruisi. "This really was my decision to move on. It was not an effect of the reorganization."

Ruisi, who has served as president and CEO of the theatre circuit since the merger of New York-based Loews and Canada-based Cineplex Odeon in 1998, further noted that the company's new owners, Onex Corp. and Oaktree Capital, had offered him a new three-year contract.

Loews Cineplex president of North American operations Travis Reid will replace Ruisi, whose resignation is effective immediately. --Francesca Dinglasan Boxoffice.Com

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Charles Everett
Phenomenal Film Handler

Posts: 1470
From: New Jersey
Registered: May 2001

posted 04-05-2002 05:39 PM

Loews' ex-CEO is denying that he was pushed out by the new owners (per the Hollywood Reporter).

Related to this thread: Loews is no longer running a 6-plex in Newark NJ. That theater had been a longtime money-loser for Loews and became an independent today.

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System Notices
Forum Watchdog / Soup Nazi

Posts: 215

Registered: Apr 2004

posted 06-21-2004 08:52 PM

It has been 808 days since the last post.

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Ron Keillor
Expert Film Handler

Posts: 166
From: Vancouver, B.C. Canada
Registered: Jul 2003

posted 06-21-2004 08:52 PM

the story continues...
Monday, Jun 21, 2004

Summer blockbuster: Onex partnership sells Loews Cineplex U.S. chain for $2B

TORONTO (CP) - In a long-awaited movie blockbuster deal, Onex Corp. and its American partner are selling the Loews Cineplex Entertainment chain of movie theatres in the United States and abroad to a U.S. investor group for $2 billion Cdn.
Onex, which bought Loews Cineplex out of bankruptcy in 2002, said Monday its proceeds from the sale will be $775 million - representing a return of about 90 per cent on its investment in the cinema operation.

The news boosted Onex shares by eight per cent.

A corporation formed by Bain Capital, Carlyle Group and Spectrum Equity Investors is paying $1.5 billion US for the world's third-largest cinema chain, with 2,200 screens at more than 200 theatres in the United States, Mexico, Korea and Spain.

Onex and its 49 per cent partner, Oaktree Capital Management, will retain the Loews Cineplex interest in Cineplex Galaxy, which operates the Loews Cineplex chain in Canada.

Onex had said in March it was looking to "explore strategic alternatives" for Loews Cineplex, which had first-quarter revenue of $305 million US, up by about 10 per cent from a year earlier.

The move to sell the subsidiary followed the termination of talks to merge it with U.S. cinema operator AMC Entertainment Inc.

In addition to the $775 million in cash it expects to receive in the third quarter, the Toronto-headquartered conglomerate will continue to own units of the Cineplex Galaxy Income Fund, spun off last year, valued at $105 million.

That total of about $880 million compares with $460 million Onex has invested since it initiated its Loews Cineplex involvement with a purchase of distressed bonds in early 2001, said a course close to the transaction who asked not to be named.

Amid a glut of new movie theatres, Loews Cineplex filed for bankruptcy court protection in the United States and Canada in February 2001. Onex and Oaktree became the equity partner in its restructuring and in a series of acquisitions since it emerged from protection in March 2002.

Loews Cineplex "has been an excellent investment," stated Anthony Munk, a managing director of Onex.

"In partnership with management, we successfully restructured the company when we acquired it out of bankruptcy. Since acquiring it we have built it into a leading exhibitor."

Under the control of Onex, Loews Cineplex quickly made acquisitions in the United States, Mexico and Korea, and then merged its Canadian assets with Galaxy Entertainment in the income trust (TSX:CGX.UN).

Onex, whose $14 billion in holdings range from computer assembler Celestica to health services and auto parts, recently made an exit from Dura Automotive Systems Inc., saying it realized $41 million on an investment of $5 million.

Onex shares closed Monday at $16.76, up $1.25 after jumping as high as $17.01 on the news of the cinema divestiture.

The stock (TSX:OCX) has a 52-week range between $17.30 and $14.25.

Oaktree Capital Management, the minority partner in the Loews Cineplex venture, is a Los Angeles-based private investment firm managing $29 billion US in assets.

The assets being sold include Loews operations in the United States as well as Grupo Cinemex in Mexico and half-interests in Megabox Cineplex of South Korea and Yelmo Cineplex in Spain.

Onex "conducted a very broad auction" which drew a variety of expressions of interest, the source said.

As for the disposal of the $775 million, he added, the company controlled by CEO Gerald Schwartz - who recently declined an $8-million bonus because of Onex's underperformance last year - is "always looking for acquisitions."

Among the private buyout specialists taking over Loews Cineplex, Bain Capital has more than $20 billion US under management, Carlyle Group has assets worth $18 billion US and Spectrum Equity Investors manages $3 billion US.

© The Canadian Press, 2004

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John Pytlak
Film God

Posts: 9987
From: Rochester, NY 14650-1922
Registered: Jan 2000

posted 06-22-2004 12:52 PM

quote: Ron Keillor
A corporation formed by Bain Capital, Carlyle Group and Spectrum Equity Investors is paying $1.5 billion US for the world's third-largest cinema chain, with 2,200 screens at more than 200 theatres in the United States, Mexico, Korea and Spain.

http://www.thecarlylegroup.com/eng/news/l5-news2805.html

quote:
June 21, 2004
# 2004-36pc
Onex To Sell Loews Cineplex To Investor Group For C$2.0 Billion; Bain Capital, Carlyle And Spectrum Equity To Purchase Loews

Toronto -- Onex Corporation (TSX:OCX) announced today that it and Oaktree Capital Management, LLC, its partner in Loews Cineplex Entertainment Corporation and Grupo Cinemex ("Loews"), have reached an agreement to sell the business to a corporation formed by Bain Capital, The Carlyle Group and Spectrum Equity Investors for C$2.0 billion. Onex and Oaktree will retain the Loews interest in Cineplex Galaxy, which operates the Loews theatre business in Canada as well as Galaxy Entertainment and trades on the Toronto Stock Exchange under the symbol CGX.UN.

Loews is the third largest movie theater chain in the global motion picture exhibition industry, with over 200 theaters and 2,200 screens worldwide. The assets being acquired include Loews' operations in the U.S., Grupo Cinemex, and its 50% interests in Megabox Cineplex of Korea and Yelmo Cineplex of Spain. Onex' share of the cash proceeds is expected to be approximately C$775 million. In addition, Onex will continue to own units of Cineplex Galaxy, which have a current market value of approximately C$105 million.

"Loews Cineplex has been an excellent investment for Onex Corporation," said Anthony Munk, a Managing Director of Onex. "In partnership with management, we successfully restructured the company when we acquired it out of bankruptcy. Since acquiring it we have built it into a leading exhibitor. As part of the transformation of Loews, we completed three successful acquisitions in the U.S., Mexico and Korea. We also merged Loews' Canadian assets with Galaxy Entertainment as part of an income trust public offering, which significantly enhanced the value of the business."

"We are pleased to partner with Carlyle and Spectrum to acquire one of the largest movie theater chains in the world, with a high quality circuit focused in the top 10 U.S. markets and key international locations," said John Connaughton, a Managing Director at Bain Capital. "Thanks in part to an existing theater portfolio that has been recently upgraded, Loews is well-positioned to capitalize on the industry's steady growth prospects. The investor group will work closely with the talented management team to grow the business."

Credit Suisse First Boston LLC and Citigroup Global Markets acted as financial advisors to Loews Cineplex in connection with this transaction. It is currently expected that the sale, which is subject to customary regulatory approvals, will close during the third quarter.

Oaktree Capital Management, LLC, based in Los Angeles, is a private investment management firm with approximately US$29 billion of assets committed for management primarily from institutional investors.

The "Carlyle Group" is mentioned in Michael Moore's "Fahrenheit 9-11":

http://www.thecarlylegroup.com/eng/company/l3-company737.html

quote:
Former President Bush was at one time the Senior Advisor to the Carlyle Asia Advisory Board but retired from that position in October 2003. He holds no other positions at Carlyle.

http://www.globalsecurity.org/military/industry/carlyle.htm

quote:
Frank C. Carlucci has been a Managing Director of Carlyle since 1989 and the Chairman since 1993. Mr. Carlucci was Secretary of Defense from November 1987 through January 1989, following his service as Assistant to the President for National Security Affairs under President Reagan. He is also Chairman of the US-ROC (Taiwan) Business Council. Before serving in these positions, Mr. Carlucci was Chairman and Chief Executive Officer of Sears World Trade, Inc. James A. Baker III has been the Senior Counselor at The Carlyle Group since 1993. Mr. Baker has served at the senior levels of the U.S. government under three different Presidents.

UK Mirror Article

quote:
MOORE exposes business links between the bin Ladens and the Bushes over the last 25 years. Bush Snr became a highly paid consultant for the Carlyle Group, one of the nation's largest defence contractors. One of the investors in Carlyle - to the tune of at least $2million (£1.2m) - was the bin Laden family.

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