Memorandum Regarding Cinemas 1, 2, 3 Transaction Liens – James J. Cotter to Company Executives

Summary

This memo from James J. Cotter to several company executives discusses minor liens totaling less than $30,000 on the Cinemas 1, 2, 3 property. Cotter states these liens are likely the responsibility of Sutton Hill Capital, not Reading, and do not need to delay the transaction's closing. He will investigate the liens' origins over the coming months and confirms that expensive expeditors are unnecessary. The memo assures that the liens will be resolved before Reading seeks financing.

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EX-10.59 8 a12618exv10w59.htm EXHIBIT 10.59 exv10w59  

EXHIBIT 10.59
JAMES J. COTTER
120 N. Robertson Boulevard
Los Angeles, CA 90048
(310)  ###-###-#### (t)
(310)  ###-###-#### (f)
MEMO
     
 
 
    
To:
  Eric Barr
 
  Gerard P. Laheney
 
  Edward L. Kane
 
  James J. Cotter, Jr.
 
  Andrzej Matyczynski
 
  S. Craig Tompkins
 
    
From:
  James J. Cotter
 
    
Date:
  August 11, 2005
 
    
Subject:
  Cinemas 1, 2, 3 Transaction
 
    
 
There are two very minor liens on the property, taxes and a sidewalk violation, that don’t add up to more than $30,000. They are undoubtedly the burden of SHC and not Reading but the deal can close without taking the steps as recommended to date. I have told the lawyers that I will, over the next few months, determine what the origin of the liens are and see if there are any other animals of this kind lurking in our other properties. You can’t just go out and put liens on property without owners receiving prior notice (this is not Australia). We do not need expeditors for $5,000 or $10,000 to look into $30,000 worth of liens. In short, the liens probably belongs to Sutton Hill Capital which needs time to determine how they came into being and are they appropriate. When the time comes for Reading to seek financing, these minor liens will be history.