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Exhibit 99
Contact: Dick Westerling
Regal Cinemas, Inc.
(865) 922-1123 ext. 4539
FOR IMMEDIATE RELEASE
REGAL CINEMAS BLOCKED FROM MAKING DECEMBER 15, 2000
INTEREST PAYMENT ON 8-7/8% DEBENTURES
KNOXVILLE, TENNESSEE --- DECEMBER 15, 2000 --- REGAL CINEMAS, INC., the
nation's largest theatre chain, said today that the administrative agent under
the Company's senior bank credit facilities has delivered a payment blockage
notice to the Company and the indenture trustee of its 8-7/8% Senior
Subordinated Debentures due 2010, prohibiting payment by Regal of the
semi-annual interest payment of approximately $ 8.8 million due to debenture
holders on December 15, 2000. The notice, which could prohibit Regal from making
any payments on the debentures for a period of up to 179 days, was delivered as
a result of the Company's noncompliance with a formula-based financial covenant,
which requires the maintenance of certain specified leverage ratios.
On December 1, 2000, Regal announced that it had been delivered a
payment blockage notice from its senior bank credit facilities prohibiting
interest payments on its 9-1/2% Senior Subordinated Notes due 2008.
"Based on the earlier notification with respect to the 9-1/2% notes, we
expected that the bank group would deliver the payment blockage of the interest
payment on the 8-7/8% debentures," said Regal Cinemas Chairman and Chief
Executive Officer Michael
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Campbell. "The Company continues to explore various strategic restructuring
alternatives, and we anticipate that we will maintain existing payment terms and
remain current with our vendors, whose continuing support during this process is
greatly appreciated."
The Company said that the payment blockage notice is not an acceleration
of the maturity of the Company's debt obligations under the senior credit
facilities and that the Company is current in all its payment obligations under
those facilities. However, based on the Company's non-compliance with its senior
credit facilities, the Company's bank group has the right to accelerate the
maturity of the Company's debt obligations thereunder. Additionally, if the bank
group exercises this option, the trustee of the debentures would have the right
to accelerate the maturity of the indebtedness evidenced by the debentures. If
any of these obligations are accelerated, the Company's business may be
materially and adversely impacted and, as a result, it may be forced to seek
protection under federal bankruptcy laws.
Regal Cinemas continues to work with its financial advisors, Jay Alix &
Associates and Houlihan, Lokey, Howard & Zukin, in developing a long-term
financial plan to address various restructuring alternatives, including the
closure of under-performing theatres, potential sales of non-strategic assets
and the potential restructuring, recapitalization or reorganization of the
Company. No assurances can be given that any such restructuring,
recapitalization or reorganization will be negotiated on terms that will allow
the payment of semiannual interest to the debenture holders.
Headquartered in Knoxville, Tennessee, Regal Cinemas Inc. operates
4361 screens at 396 locations in 32 states.
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# # #
This press release contains forward-looking statements that are based upon
current expectations and involve a number of risks and uncertainties. For Regal
to use the "safe harbor" provisions under the Private Litigation Reform Act of
1995, you are hereby cautioned that these statements may be affected by the
important factors, among others, set forth below or noted in Regal's periodic
filings with the SEC, and consequently, actual operations and results may differ
materially from those expressed in these forward-looking statements. The
important factors include Regal's dependence on motion picture production and
performance; risks associated with expansions and acquisitions; and competition
experienced by Regal's theatres. In addition, our high debt levels make the
Company vulnerable to any significant industry downturns. Any inability to
successfully negotiate with our senior lenders would have a material adverse
effect on our performance and may impair our abilities to service future capital
and other long-term commitments.
