Bankruptcy Judge OKs Edwards’ Recovery Plan

Edwards Theatres Circuit Inc. on Monday won a bankruptcy judge’s approval of a recovery plan that clears the way for the closely held chain of 59 cinemas to emerge from Chapter 11 protection under new ownership.

The plan, approved by Judge Lynne Riddle in Santa Ana, includes a $56-million investment by Denver billionaire Philip Anschutz and a unit of Los Angeles-based Oaktree Capital Management LLC. In return, the Anschutz and Oaktree investment group will get preferred stock and 51% of the reorganized company’s shares.

Edwards, based in Newport Beach, filed for Chapter 11 bankruptcy protection in August 2000, joining more than half a dozen cinema chains that have sought bankruptcy protection since 1999.