Independent American movie theatre chain Alamo Drafthouse — the parent company of soundtrack record labels Mondo and Death Waltz — is filing for Chapter 11 bankruptcy protection as a result of COVID-19.
Today the Texas-based company announced a restructuring deal to sell off its assets as part of the bankruptcy filing in Delaware Bankruptcy Court, reports The Hollywood Reporter.
Chapter 11 bankruptcy will allow the Alamo to continue operating while the company's managers and advisers attempt to repay creditors. The filing found Alamo Drafthouse listing assets and liabilities of as much as $500 million USD each.
According to court papers, private equity firm Altamont Capital Management owns 40 percent of the company. Also, among the buyers in the restructuring deal will be Alamo co-founder Tim League.
While this paints a very uncertain future for Alamo Drafthouse, as well as Mondo and Death Waltz, the company explained that it hopes the bankruptcy filing will allow it to survive past the ongoing pandemic, which has been exceptionally hard on movie theatres.
"The transaction will provide the company with much-needed incremental financing to stabilize the business during the pandemic, which has had an unprecedented and outsized impact upon the movie theatre and dining industries," the company said in a statement. "More importantly, it will position Alamo Drafthouse to return to growth and continue executing on its long-term strategic vision."
While the Alamo undergoes restructuring, the company stated its theatres will not be impacted and will remain open wherever possible.
In a statement, League explained the following:
Because of the increase in vaccination availability, a very exciting slate of new releases, and pent-up audience demand, we're extremely confident that by the end of 2021, the cinema industry — and our theatres specifically — will be thriving. We are fortunate to have an incredibly talented and passionate team who are eager to welcome our loyal fans back to our theaters for a cinematic experience that can't be replicated. That said, these are difficult times and during this bankruptcy we will have to make difficult decisions about our lease portfolio. We are hopeful that our landlord and other vendor partners will work with us to help ensure a successful emergence from bankruptcy and viable future business.
Alamo Drafthouse has 41 theatres in the U.S., with 12 of those being in Texas.
As of press time, neither Mondo nor Death Waltz has made any comment about the bankruptcy filing.
Today the Texas-based company announced a restructuring deal to sell off its assets as part of the bankruptcy filing in Delaware Bankruptcy Court, reports The Hollywood Reporter.
Chapter 11 bankruptcy will allow the Alamo to continue operating while the company's managers and advisers attempt to repay creditors. The filing found Alamo Drafthouse listing assets and liabilities of as much as $500 million USD each.
According to court papers, private equity firm Altamont Capital Management owns 40 percent of the company. Also, among the buyers in the restructuring deal will be Alamo co-founder Tim League.
While this paints a very uncertain future for Alamo Drafthouse, as well as Mondo and Death Waltz, the company explained that it hopes the bankruptcy filing will allow it to survive past the ongoing pandemic, which has been exceptionally hard on movie theatres.
"The transaction will provide the company with much-needed incremental financing to stabilize the business during the pandemic, which has had an unprecedented and outsized impact upon the movie theatre and dining industries," the company said in a statement. "More importantly, it will position Alamo Drafthouse to return to growth and continue executing on its long-term strategic vision."
While the Alamo undergoes restructuring, the company stated its theatres will not be impacted and will remain open wherever possible.
In a statement, League explained the following:
Because of the increase in vaccination availability, a very exciting slate of new releases, and pent-up audience demand, we're extremely confident that by the end of 2021, the cinema industry — and our theatres specifically — will be thriving. We are fortunate to have an incredibly talented and passionate team who are eager to welcome our loyal fans back to our theaters for a cinematic experience that can't be replicated. That said, these are difficult times and during this bankruptcy we will have to make difficult decisions about our lease portfolio. We are hopeful that our landlord and other vendor partners will work with us to help ensure a successful emergence from bankruptcy and viable future business.
Alamo Drafthouse has 41 theatres in the U.S., with 12 of those being in Texas.
As of press time, neither Mondo nor Death Waltz has made any comment about the bankruptcy filing.
