Regal Cinemas to File Chapter 11

Regal Cinemas Inc., the biggest U.S. movie theater chain, said it will file for Chapter 11 bankruptcy protection within six weeks and has asked creditors to endorse a recovery plan in advance of the filing.

Denver billionaire Philip Anschutz and Los Angeles-based investment fund Oaktree Capital Management bought a large stake in Regal’s bank debt earlier this year. If accepted by creditors and a Bankruptcy Court judge, the plan could clear the way for Anschutz and Oaktree to take over the company.

Leveraged buyout firms Kohlberg Kravis Roberts & Co. and Hicks, Muse, Tate & Furst Inc. acquired Knoxville, Tenn.-based Regal two years ago and have been engaged in a battle with Anschutz for control of the company.

Under the new deal, KKR and Hicks Muse would receive nothing but would be free from Regal’s debt.