Theater owners file for Ch. 11
Daily Herald, 11 August 2004, page A1
Article Summary:
LCA Enterprises LLC, owner of the Thanksgiving Point Stadium 8 and Water Gardens Cinema 6, filed for Chapter 11 bankruptcy on 2 July 2004 in order to keep its lease agreement with Thanksgiving Point Development Co.
LCA Enterprise ran into financial difficulties after Capital Construction and Development Inc. failed to complete a remodeling project at the Water Gardens Cinema 6.
The three-month project, which was scheduled to start in August 2003, including converting four theaters to stadium seating, painting the exterior of the building, expanding the lobby, and adding an arcade room. LCA says the contractor didn't perform the work, despite being paid more than $126,000. As a result the theater lost the buffer cash that was meant to cover expenses during the slowest period of the year, from January through April.
Both theaters also suffered from competition with the new 12-screen Cinemark theater in American Fork.
LCA fell behind on rent payments for the Thanksgiving Point site and owed about $83,000 in license fees to 10 motion picture film companies. Declaring bankruptcy allowed LCA to keep its lease agreement with Thanksgiving Point and to pay back only those film distributors who continued to supply the theaters with movies.
LCA hopes to emerge from bankruptcy restructuring in a few months and plans to add two more screens to the Water Gardens Cinema and complete its remodeling project by November 2004.
LCA Enterprise ran into financial difficulties after Capital Construction and Development Inc. failed to complete a remodeling project at the Water Gardens Cinema 6.
The three-month project, which was scheduled to start in August 2003, including converting four theaters to stadium seating, painting the exterior of the building, expanding the lobby, and adding an arcade room. LCA says the contractor didn't perform the work, despite being paid more than $126,000. As a result the theater lost the buffer cash that was meant to cover expenses during the slowest period of the year, from January through April.
Both theaters also suffered from competition with the new 12-screen Cinemark theater in American Fork.
LCA fell behind on rent payments for the Thanksgiving Point site and owed about $83,000 in license fees to 10 motion picture film companies. Declaring bankruptcy allowed LCA to keep its lease agreement with Thanksgiving Point and to pay back only those film distributors who continued to supply the theaters with movies.
LCA hopes to emerge from bankruptcy restructuring in a few months and plans to add two more screens to the Water Gardens Cinema and complete its remodeling project by November 2004.