Carmike Cinemas proposes full recovery in reorganization

By Peter Heap

New York, Oct. 1 - Carmike Cinemas, Inc. said it filed a proposed plan of reorganization with the United States Bankruptcy Court for the District of Delaware that provides full recovery including interest for creditors, including the senior secured lenders, the senior subordinated noteholders and general unsecured creditors.

The plan, filed along with a disclosure statement on Friday, must now be confirmed by the bankruptcy court and voted on by certain creditors and shareholders.

If approved, the equity of the Columbus, Ga. movie theater operator will be made up as follows:

--Holders of $55 million of preferred stock will receive 39.9% in exchange for their securities;

--Holders of $50 million of senior subordinated notes will be able to convert their notes to 28.1% of the equity;

--Existing equity holders will receive 22% of the new equity;

--10% will be reserved for issuance under a management incentive plan.

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