Goodrich files for bankruptcy

[MisterGoodrich2U]

Goodrich Quality Theaters has filed for bankruptcy. For the kids, Bob Goodrich is the former owner of WVIC/Lansing, WODJ/Grand Rapids and WSNX/Muskegon-GR.

From WZZM-TV:

Goodrich Quality Theaters (GQT), a West Michigan-based theater chain, filed for bankruptcy in federal court in Grand Rapids.

The theater chain has 31 movie theaters in five states; the majority of the locations are in Michigan.

GQT owes its creditors between $10 million and $50 million, according to the bankruptcy filing. Its assets are listed at being valued at $50 million to $100 million.

The chain is owned by Bob Goodrich.

The Grand Haven 9, Ada-Lowell 5, Hasting 4, Holland 7 and Kalamazoo 10 are all owned and operated by GQT. It is headquartered in Grand Rapids.

In January, a discrimination complaint was filed against GQT after teenage employees said they were fired for being under the age of 17. A petition was also started to bring attention to that claim; it has more than 10,000 signatures.

The first GQT theater was started in 1930.

[The Sage]

Hey Goodrich,

How's that niece of yours? Been thinking of her lately.

[MasterB]

Does that mean GQT closing all there movie theaters? Didn't Bob run for congress in 2014 and lost big time to Justin Amash.

[MWmetalhead]

My guess is the real estate will be sold in a Section 363 sale (which is the legal term to describe a systematically run auction process where the buyer is able to receive free & clear title, with the exception of any outstanding tax liens).

It's possible the senior secured lender(s) will credit bid, although that likely would only occur if any other offers received are very weak. Given the different characteristics of the cities where the real estate is located, not to mention the fact some parcels are likely more valuable than others, I would be surprised if everything is sold to a single buyer.

What do I mean by "credit bid" ? Debt held by senior secured lenders basically can be used like cash in a bankruptcy auction.

Let's say for sake of argument that $25 million is owed to the Bank. Let's say they "credit bid" $15 million for the whole enchilada. Let's say Bidder B offers $10 million cash and Bidder C offers $8 million cash.

Under the above scenario, the Bank would be the winning bidder. They would receive free & clear title (except for any property tax liens that may exist) to the real estate. Their $25 million loan balance would then be written down to $10 million. How the remaining $10 million claim would be treated in Bankruptcy court would depend on whether or not the Bank is secured by any of the other assets held by the Debtor, and if so, if they hold a priority lien position in those assets relative to other creditors.

My guess is any sale of the theaters would also include all personal property inside of the theaters, so any remaining asset value to satisfy unresolved claims would be limited to cash, accts receivable, contracts, brand value and the like.

[Deleted User 24]

Hey Goodrich,

How's that niece of yours? Been thinking of her lately.

Don't get the reference. Please elaborate.

[audiophile]

Reference to Avatars.

[The Sage]

Hey Goodrich,
How's that niece of yours? Been thinking of her lately.

Don't get the reference. Please elaborate.

Goodrich has the sweetest nieces and would post them as avatars. He would tell us all stories.

[MisterGoodrich2U]

Yup, mea culpa.
Probably not a good idea to do that anymore, what with all the #metoo stuff going on.