Cinema giant and Regal owner Cineworld has formally submitted its reorganization plan to emerge from Chapter 11 bankruptcy in the near future, the company said early in London on Tuesday. It said the goal remains to do this midway through the year.
The second largest exhibitor in the world has also looked at a possible sale. “The group remains committed to getting out of Chapter 11 cases as quickly as possible, although, among other things, any sales transaction resulting from the marketing process could delay emergence beyond the first half of 2023,” the company said.
The proposed restructuring, which must be approved by the bankruptcy court, is designed to reduce the company’s debt by about $4.53 billion, primarily by giving lenders stock in the reorganized group in exchange for forgiving their claims. Cineworld’s lenders who have agreed to the restructuring control about 83 percent of the company’s term loans due in 2025 and 2026 and its revolving credit facility due in 2023, Cineworld said earlier.
The company reiterated on Tuesday that the reorganization offers no relief or recovery for shareholders.
“During the restructuring process, Cineworld will continue to operate its global operations and cinemas as usual without interruption,” the company reiterated. “Cineworld and its brands around the world – including Regal, Cinema City, Picture House and Planet – continue to welcome customers to cinemas as usual.”