Imax features deal for 6 Regal theaters
Exhib to make a lump-sum payment to clear up debt
Subject to bankruptcy court approval, Regal will make a lump-sum payment to Imax in the vicinity of $6.5 million to settle outstanding claims between the two companies. Imax co-CEO Rich Gelfond declined to confirm or deny the amount, saying only, "I think it works for both sides."
Four of the cinemas, opened between 1998 and 2000, were owned by Regal and leased Imax equipment and two were joint ventures. As part of the deal, all will turn into leases and the planned construction of several additional Imax theaters is dropped. The lump sum also settles a backlog of overdue payments.
"We are extremely happy to strike a deal with Regal, one of our most important clients," said Gelfond and co-CEO Brad Wechsler in a statement. Gelfond told Daily Variety that despite having just six out of 220 screens worldwide, the Regal cinemas are key to Toronto-based Imax's strategy of attracting studios to the Imax format.
In keeping Regal's six Imax theaters open, both companies will benefit from Imax's 2002 film slate, which Gelfond said is the strongest in Imax's history. It includes the 3D films "Space Station," James Cameron's "Ghosts of the Abyss" and Steve Oedekerk's "Santa Versus the Snowman" as well as "Ultimate X" from Disney's Touchstone, Disney's "The Young Black Stallion" and "Treasure Planet."
As part of its restructuring plan, Regal was acquired by a consortium led by United Artists and Edwards Theater chain owner Philip Anschutz. Imax also has endured fiscal hardship over the past two years.
