Alamo Drafthouse Cinemas Holdings, a Texas-based dine-in cinema chain, stated Wednesday that it has actually applied for insolvency as well as will get in a restructuring contract due to financial troubles throughout the pandemic.
The company intends to offer a lot of its properties to affiliates of Altamont Capital and also Fortress Investment Group under Chapter 11 bankruptcy, which enables Alamo Drafthouse to proceed running while its advisers and supervisors deal with paying back creditors.
” The transaction will provide the business with much-needed step-by-step financing to stabilize the business during the pandemic, which has had an outsized and also extraordinary impact upon the cinema and also eating sectors,” the company stated in a statement. “More significantly, it will certainly position Alamo Drafthouse to go back to growth and continue performing on its long-term calculated vision.”
In its insolvency request, Alamo Drafthouse provided properties and also responsibilities of as much as $500 million each. Court papers show that exclusive equity company Altamont Capital Management possesses 40% of the business.
Alamo Drafthouse, like several others in the show business, has actually been facing a harsh year because the pandemic began requiring many businesses to briefly and also permanently close.
The cinema franchise business is understood for its fantastic photo and sound quality, food and beer menu. Tim League and his wife, Karrie, established the chain in 1997 in Austin.
The Austin-based company has greater than 40 cinemas nationwide, including some in the Dallas-Fort Worth area and Kansas City, Missouri. The majority of the business’s theaters shut last March yet resumed in late summer season 2020 with an in-depth pandemic procedure plan.
Under the restructuring agreement, the Alamo Drafthouse Ritz in downtown Austin, in addition to movie theaters in New Braunfels and also Kansas City, Missouri, will close completely. All other theaters that are presently open will continue operating adhering to local pandemic guidelines.