Theater owner files for Chap. 11
That doesn't mean Water Gardens Cinema 6 in Pleasant Grove or Thanksgiving Point Stadium 8 are closing, however.
In fact, their financial woes stem from an expansion plan gone wrong.
Last summer, LCA Enterprises LLC, the San Francisco-based owner of the two movie houses, planned to remodel the six-screen Water Gardens cinema. The three-month project would have included converting four theaters to stadium seating, expanding the lobby, adding an arcade room and painting the cinema's exterior.
But the project was never finished, according to LCA. Instead, the contractor, Provo-based Capital Construction and Development Inc., allegedly left the job undone after being paid $126,000. Capital Construction could not be reached for comment.
LCA had planned to use that money as a buffer to cover the theaters during their slowest period — January through April.
Now the company can barely pay film distributors for the rights to show movies or pay rent at its Thanksgiving Point theater.
LCA officials say they owe $168,000 in rent and have been current since filing for bankruptcy. LCA has not had problems paying rent at Water Gardens.
LCA also owes about $83,000 in license fees to 10 motion picture film companies, including Warner Brothers, Dreamworks and MGM. Several motion picture companies had threatened to stop providing films to LCA until license fees were paid.
Earlier this month, U.S. Bankruptcy Court Judge Judith Boulden approved LCA's request to pay only those companies that agreed to continue supplying films to them.
E-mail: jhyde@desnews.com
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