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Commitments And Contingencies | 9 Months Ended
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Sep. 30, 2016
Commitments And Contingencies [Abstract] |
Commitments And Contingencies | Note 13 – Commitments and Contingencies Litigation The STOMP Arbitration In April 2016, we received a Final Award in our arbitration with The STOMP Company Limited Partnership (“Stomp”), the producer of the show STOMP, which has been playing at our Orpheum Theater in New York City for 20 years and still continues to play to this day. The Final Award awards us $2.3 million in attorney’s fees and costs. In September 2016, the parties agreed on the payment terms of the Final Award (“Payment Agreement”), on a basis that is intended to allow recovery by the Company of the entire Final Award (plus interest at 4%), while at the same time allowing the show to continue playing at our Orpheum Theater. Under the Payment Agreement, Stomp made an initial payment of $325,000 on September 28, 2016 and the remaining amount to be paid over time, with final payment due and payable in June 2019. We have filed a judgment of the arbitral award against Stomp with the New York Supreme Court to protect the Company in the event Stomp defaults on the Payment Agreement. STOMP continues to play at our Orpheum Theater under a license agreement that was amended by the Payment Agreement. Derivative Litigation In July 2016, all of the stockholder plaintiffs in the consolidated derivative cases other than James J. Cotter, Jr. (the “Independent Plaintiff Stockholders) entered into a settlement agreement with the Company and all of the Company’s directors (other than James J. Cotter Jr.) withdrew their claims. The settlement was approved by the District Court of the State of Nevada for Clark County and the judgment dismissing with prejudice the claims of the Independent Plaintiff Stockholders was entered on October 20, 2016. Under the judgment, each party is to bear its own legal fees. In the joint press release issued by the Company and the Independent Plaintiff Stockholders on July 13, 2016, representatives of the Independent Plaintiff Stockholders stated as follows: "We are pleased with the conclusions reached by our investigations as Plaintiff Stockholders and now firmly believe that the Reading Board of Directors has and will continue to protect stockholder interests and will continue to work to maximize shareholder value over the long term. We appreciate the Company's willingness to engage in open dialogue and are excited about the Company's prospects. Our questions about the termination of James Cotter, Jr., and various transactions between Reading and members of the Cotter family-or entities they control-have been definitively addressed and put to rest. We are impressed by measures the Reading Board has made over the past year to further strengthen corporate governance. We fully support the Reading Board and management team and their strategy to create stockholder value.” On August 3, 2016 James J. Cotter Jr., filed a motion with the Court seeking permission to file a “Second Amended Verified Complaint” (the “SAP”), which motion has been approved. The SAP adds as defendants Directors Judy Codding and Michael Wrotniak It adds additional purported claims including purported claims relating to the selection of Ellen Cotter to serve as our Company’s President and Chief Executive Officer, the retention of Margaret Cotter to serve as our Executive Vice President responsible for our live theater operations and the management and development of our New York properties, the ability of Ellen Cotter and Margaret Cotter to vote 100,000 share of our Class B stock, issued upon the exercise of certain stock options held of record by the Estate of James J. Cotter, Sr., and the handling by our Board of Directors of an indication of interest received at the end of May relating to the purchase of all of the stock of our Company. Discovery is continuing. No trial date has been scheduled. To date, except for a $500,000 deductible, the bulk of the out-of-pocket costs associated with the defense of the above described litigation has been covered by the Company’s Directors and Officers Insurance. However, the $10,000,000 limits of that policy have now been exhausted. Accordingly, the costs of such defense going forward will be a general administrative expense of the Company. Debt Guarantee The total estimated debt of unconsolidated joint ventures and entities, consisting solely of Rialto Distribution (see Note 6 – Investments in Unconsolidated Joint Ventures and Entities), was $1.1 million (NZ$1.5 million) as of September 30, 2016 and $1.0 million (NZ$1.5 million) as of December 31, 2015. Our share of the unconsolidated debt, based on our ownership percentage, was NZ$500,000 as of September 30, 2016 and December 31, 2015, respectively. This debt is guaranteed by one of our subsidiaries to the extent of our ownership percentage. Based on the financial position of Rialto Distribution and in consideration of this debt guarantee, we accrued $364,500 (NZ$500,000) and $342,000 (NZ$500,000) as of September 30, 2016 and December 31, 2015, recorded as part of Accounts payable and accrued liabilities. ﻿

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