Carmike Cinemas to repay 7½% notes after investors accelerate debt

New York, June 5 - Carmike Cinemas, Inc. said it will repay all its $150 million of 7½% senior subordinated notes due 2014 on June 6 after holders of more than 25% of the debt delivered a notice of acceleration.

Carmike received the notice on June 2, making the notes immediately due as of June 4.

Carmike previously received a notice of default from the note trustee on April 3 because of its failure to file on time its form 10-K annual report for the year ended Dec. 31, 2005.

A 60-day cure period was triggered by the notice.

Since Carmike did not file the report by June 2 or receive the necessary consents for a wavier, the default was not cured and the trustee or holders of 25% of the notes had the ability to accelerate the debt.

The Columbus, Ga., movie theater company also said that on June 5 it amended its credit facility to allow it to use part of the existing delayed-draw term loan commitment to repay the notes.

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