Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Contingencies

The Company, in the normal course of business, is involved in routine litigation and legal proceedings, such as personal injury claims, employment matters, contractual disputes and claims alleging Americans with Disabilities Act violations. Currently, there is no pending litigation or proceedings that the Company believes will have a material adverse effect, either individually or in the aggregate, on its business or its financial position, results of operations or cash flow.

Shareholder Litigation

On April 25, 2016, a purported holder of the Company’s common stock (“Plaintiff”) filed a putative class action in the United States District Court for the Middle District of Georgia, Columbus Division, captioned Solak v. Passman, et al., C.A. No. 4:16-cv-154 (CDL), against the Company’s directors, AMC Entertainment Holdings, Inc. (“AMC”), and AMC’s merger subsidiary arising from the proposed acquisition of the Company by AMC (the “Merger”). Plaintiff’s complaint alleges that the preliminary proxy statement filed by the Company on March 31, 2016 with the Securities and Exchange Commission (“SEC”) in connection with the Merger contained false and misleading statements and omitted material information in violation of Section 14(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and SEC Rule 14a-9 promulgated thereunder, and further that the director defendants are personally liable for those alleged misstatements and omissions under Section 20(a) of the Exchange Act. In addition, Plaintiff’s complaint alleges that the director defendants breached their fiduciary duties owed to the public stockholders of the Company in connection with the Merger and that AMC and its merger subsidiary aided and abetted those breaches. Plaintiff’s complaint seeks, among other things, to enjoin the Merger until the alleged Exchange Act violations and breaches of fiduciary duties are remedied, to rescind the merger agreement or any terms thereof to the extent such agreement or terms have already been implemented, and an award of attorneys’ and experts’ fees and costs. Although it is not possible to predict the outcome of litigation matters with certainty, the Company believes that the claims raised by the purported stockholder are without merit and intends to defend against them vigorously.