''I'm not at all thrilled with the second quarter,'' Hall toldGlobeSt.com. ''The second quarter started out OK, and then we gothit in the head by June. June was just a really bad film month. Ifyou look at the releases (on operating results) from all our othercompetitors, they all went through the same thing.''

Revenues in the second quarter dropped by 17.3% to $138.6million from $167.5 million a year ago. One bright spot was that inthe first half of the year, cash flow or EBITDA (earnings beforeinterest, taxes, depreciation and amortization) decreased only 4%,thanks to improved operating margins. Second-quarter operatinglosses increased to $21.5 million from $3.8 million, primarily dueto savings realized from closing unprofitable theaters andrestructuring.

Meanwhile, Hall is continuing to work with senior bankinglenders to recapitalize and restructure debt. He also has initiateddiscussions with a group that has acquired a large part of itssubordinated debt. Denver-based Philip Anschutz, the richest man inColorado and the chairman of Qwest Communications, heads the group.Publicity shy Anschutz and his partners also own a substantialoffice portfolio in Colorado. In addition, they own the StaplesStadium in Los Angeles, Los Angeles Lakers and Los Angeles Kingshockey team.