Anschutz Gets Control of United Artists Chain

Telecommunications and railroad magnate Philip Anschutz has won control of United Artists Theater Circuit, the nation’s sixth-largest movie theater chain, which is one among a string of cinema operators to file for bankruptcy protection to escape choking debts.

The United Artists reorganization plan giving Anschutz control was approved by a federal bankruptcy judge in Delaware on Monday.

Two weeks ago the privately held Anschutz Investment Co. of Denver and Los Angeles-based Oaktree Capital Management bought $350 million of the $1-billion debt of the nation’s largest movie theater chain, Regal Cinemas.

The theater chains join a growing roster of sports and entertainment properties controlled by Anschutz. Through his Anschutz Investment Co., he owns the Kings hockey team, 25% of the Lakers basketball team and a 50% stake in the Staples Center arena in Los Angeles.

Though Anschutz is the largest single owner of Knoxville, Tenn.-based Regal, its bankers have not agreed at this point to allow Anschutz to take control.

Nationwide, United Artists owns 1,604 screens and Regal owns 4,332 screens.

Financially strapped Loews Cineplex Entertainment Corp. announced plans Tuesday to close 112 aging movie venues in the U.S. and Canada.

Anschutz can take control after 10 days, said Kurt Hall, president of Englewood, Colo.-based United Artists.

The bankruptcy reduces United Artists’ debt by more than $500 million. This will allow the company to start having positive cash flow, Hall said.

“I think we’ve got a great opportunity here,” Hall said. “We have a very good capital structure. What will emerge is a company with good, strong support that will provide a great opportunity going forward.”