This is topic UA's financial situation in forum Film Handlers' Forum at Film-Tech Forum ARCHIVE.
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Posted by Scott Madsen (Member # 167) on 10-03-1999, 09:59 PM:
I was just wondering if anyone has the latest news on UA's financial situation? How close are they to Chapter 11?
Posted by Joe Redifer (Member # 3) on 10-04-1999, 02:13 AM:
They just filed and are in the process of firing every employee! Just kidding.Actually, UA just avoided defaulting on their loans. However a spokesperson for UA says that they still owe somewhere between $350 million and $375 million.
What stumps me is how they could say "Somewhere between $350 and $375 million". How could they not know exactly how much they know, at least to the millions of dollars? That's a lot of money to lose track of. Now wonder they are in trouble with accounting like that.
Posted by Ken Layton (Member # 133) on 10-06-1999, 10:32 PM:
Over on Delphi.com (Motion Picture Exhibitor's Forum), UA is closing some more theaters.
It's under the heading: "Bad Week For The Big Boys".
Posted by Ky Boyd (Member # 23) on 10-08-1999, 10:12 AM:
FWIW, here is a link to UA's press release regarding operating results through July 1, 1999. http://biz.yahoo.com/bw/990810/co_united__1.html As you can see in the limited financials they present, the company does actually generate a positive cash flow before interest, taxes, depreciation and amortization (EBITDA). Of course their debt is so huge they are getting killed on the debt service.
Posted by Ken Layton (Member # 133) on 10-08-1999, 01:31 PM:
The new Oct 4 - 10 issue of Weekly Variety is now reporting UA owes 450 Million dollars.
General Cinemas and AMC are also having money problems.
Warner Bros. and Paramount have now purchased Mann Theaters and will be selling off some of them.