The parent of movie theater chain General Cinema said in a quarterly filing it may consider a bankruptcy reorganization, blaming losses on bad investments and competition.
Shares of GC Companies fell 24 percent, or $1.19 a share, to close at $3.75 Tuesday on the New York Stock Exchange. The shares have lost 57 percent of their value since Thursday, when they closed at $8.75.
The cinema chain lost $10.1 million, or $1.30 a share, in the quarter ending July 31. Attendance was down about 4 million, to 72 million, at its theaters over the same quarter last year, according to the document filed with the Securities and Exchange Commission.
GC Companies, which operates 130 General Cinema movie theaters with more than 1,000 screens in 23 states, including several in the Buffalo area, said it has enough cash and investment income to cover its bills for the next 12 months.
Trade deficit continues to grow
WASHINGTON (AP) -- The U.S. trade deficit soared to a record $31.9 billion in July as oil prices climbed to a 10-year high. America set record deficits with China, Japan, Western Europe and Canada.
The Commerce Department said today that the July deficit was 6.9 percent higher than a revised $29.8 billion imbalance in June. It surpassed the old record of $30.4 billion set in March.
Trade continues to be the one blot on an otherwise sterling U.S. economic performance. So far this year, the trade deficit is running at an annual rate of $353.7 billion, far surpassing the old record of $265 billion set just last year.
While the huge deficits have yet to have much impact on the overall economy, analysts are growing concerned that the deficits could become a problem if foreigners, who up until now have been happy to accept U.S. dollars in payment for their products, suddenly grew concerned.
ADC makes $2.25 billion buy
MINNETONKA, Minn. (Bloomberg) -- ADC Telecommunications, a maker of products that delivers high-speed Web connections, said it agreed to buy closely held rival Broadband Access Systems for $2.25 billion in stock.
The number of shares ADC will pay for Broadband Access depends on the average closing price of ADC's stock for the five trading days before the acquisition is completed and is expected to range from 54 million to 66 million shares. The agreement is subject to ADC shares trading in the range of $34.127 and $41.711 during that period.
The purchase will give ADC's network more capacity to handle mounting Internet traffic. Phone companies are moving to deliver high-speed Web connections on ordinary phone lines, using ADC products like components used in fiber-optic equipment.
Klein to leave Justice Dept.
WASHINGTON (AP) -- Antitrust chief Joel I. Klein, who launched the case to break up Microsoft and won record criminal fines against international price fixers, will leave government at the end of this month.
Klein, 53, intends to take time off and then begin a search for his next job, a Justice Department aide said.
During Klein's tenure, which began Oct. 18, 1996, the government blocked or altered about 170 mergers. In 220 criminal price-fixing cases, 52 executives were sent to prison, corporations paid $1.7 billion in fines and individuals paid another $21 million.
Klein will leave before the courts render a final verdict on the Microsoft case.