Knoxville, Tenn. – Locally based Regal Cinemas is seeking approval to restructure under Chapter 11 of the federal bankruptcy code.

The company plans to pay off 100% of its debt and shift ownership to a group led by majority owner of Englewood, Colo.-based United Artists Theater Corp., Philip Anschutz. He and his investment fund partner, Los Angeles-based Oaktree Capital Management, already own $500 million to $750 million of Regal’s debt, making them the chain’s major creditors.

Regal already has closed 90 unprofitable theaters, or 600 screens, and plans to shutter another 20 to 25 locations under its new ownership.