UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 2, 1998
AMC ENTERTAINMENT INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-8747 43-1304369
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
106 W. 14TH STREET, KANSAS CITY, MO 64105-1977
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (816) 221-4000
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Item 5. Other Events. On September 2, 1998 the Company was served with
a lawsuit filed in Canada in the Ontario Court (General Division) against the
Company and its subsidiary, AMC Entertainment International, Inc. (1107656
Ontario Inc. v. AMC Entertainment Inc. and AMC Entertainment International Inc.,
98-CV- 154393). The lawsuit arises in connection with a decision by the Company
not to execute a lease for a proposed theatre at an entertainment center being
planned by the plaintiff in Markham, Ontario. Plaintiff claims that the alleged
lease was consistent with the terms of a prior offer to lease executed in 1997
by the plaintiff and AMC Entertainment International, Inc. and alleges that the
lease had been fully negotiated and agreed to by the parties. Plaintiff alleges
the Company's action resulted in the wrongful repudiation of the offer to lease
and alleged lease for the proposed theatre and forced the plaintiff to abandon
plans for the entertainment center. Plaintiff claims damages of $32,200,000
(Canadian) (approximately $ 21,000,000 U.S. at current exchange rates), of which
$2,200,000 (approximately $ 1,145,000 U.S.) is based on lost development costs
allegedly incurred and $30,000,000 (approximately $19,550,000 U.S.) in lost
profits.
The Company has not yet filed an answer, but intends to deny that
there is a lease or other binding obligation to plaintiff. The Company intends
to vigorously defend this action. The Company believes that should plaintiff
prevail in its allegations of liability, its claim for $30,000,000 (Canadian) in
lost profits damages would be subject to an obligation to mitigate its claimed
damages. However, at this stage of the proceedings it is premature to assess the
potential value of such mitigation.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrants has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AMC ENTERTAINMENT INC.
Date: September 10, 1998 By: /s/ Richard L. Obert
Richard L. Obert
Senior Vice President and
Chief Accounting and
Information Officer
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