Edwards Reorganization Gives Reins to Anschutz

Creditors of Edwards Theatres Circuit Inc. approved a bankruptcy reorganization plan that gives control of the cinema chain to billionaire Philip Anschutz and an investment partner, the Newport Beach company said Tuesday.

The plan will pay 90 cents on the dollar to creditors who want cash as soon as the plan becomes effective and it will give full payments to creditors who are willing to take payment over seven years. About five creditors requested full payment, Edwards spokeswoman Anita-Marie Hill said.

A final confirmation hearing before U.S. Bankruptcy Judge Lynne Riddle is scheduled for Sept. 19. If confirmed, the plan is expected to become effective in one to two months.

Under the proposal, the theater chain will raise $56 million by selling a 51% stake to Anschutz and Oaktree Capital Management, a Los Angeles distressed-debt specialist. Members of the Edwards family, who have controlled the company for more than 70 years, would own the rest.

If claims by unsecured creditors exceed $55 million, the Anschutz investor group would pitch in more money and the Edwards family’s ownership would decrease proportionately.