Name: No Rival Bids Received for Alamo Drafthouse, Clearing Way for Fortress Takeover
Brand: variety.com
SKU: variety-com-202
Availability: OnlineOnly

critic

No Rival Bids Received for Alamo Drafthouse, Clearing Way for Fortress Takeover

preview

A bankruptcy auction for the theater chain has been canceled, after no rival bids were received for the company.The cancelation clears the way for and to take control of the company, in a deal that also includes Alamo Drafthouse co-founder .Alamo Drafthouse Cinema on March 3, among a wave of theater chains that have gone under due to the pandemic. Studio Movie Grill and Cinemex have also declared bankruptcy, and earlier this month Pacific Theatres, which owns Arclight Theatres, announced that it would not reopen.Alamo Drafthouse went bankrupt after being unable to renegotiate $105 million in debt. At the time of the bankruptcy announcement last month, the circuit said it would also close three theaters permanently, though the remaining locations will continue to operate.A bankruptcy auction was scheduled to take place on Wednesday. But on Monday, the company’s lawyers disclosed that no competing qualified bids were received, and the auction was canceled.That leaves Fortress and Altamont — which had submitted the stalking horse bid — as the lone bidder. The group holds the company’s long-term debt, and also agreed to provide up to $20 million in debtor-in-possession financing to keep the company operating while in bankruptcy. The group was set to use that DIP financing to credit bid for the company — effectively swapping its debt for equity in the reorganized company.Altamont has been an investor in the company since June 2018. As the company’s liquidity crisis deepened last fall, the ownership group brought in Fortress — an investor in distressed debt — to help buy its long-term debt from Bank of America and other lenders.League and Dave Kennedy, a longtime investor and board member, remain involved as minority partners with Altamont and Fortress. According to bankruptcy records, League bought 2.7% of the company’s debt.A hearing has been set for May 3 in Delaware bankruptcy court to approve the sale to the stalking horse group led by Altamont and Fortress.JavaScript is required to load the comments.Loading comments...A Variety and iHeartRadio PodcastadTo help keep your account secure, please log-in again.You are no longer onsite at your organization. Please log in.For assistance, contact your corporate administrator.

A bankruptcy auction for the theater chain has been canceled, after no rival bids were received for the company.The cancelation clears the way for and to take control of the company, in a deal that also includes Alamo Drafthouse co-founder .Alamo Drafthouse Cinema on March 3, among a wave of theater chains that have gone under due to the pandemic. Studio Movie Grill and Cinemex have also declared bankruptcy, and earlier this month Pacific Theatres, which owns Arclight Theatres, announced that it would not reopen.Alamo Drafthouse went bankrupt after being unable to renegotiate $105 million...

public

Gene Maddaus

variety.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

No Rival Bids Received for Alamo Drafthouse, Clearing Way for Fortress Takeover

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS