Movie theater giant and Regal owner Cineworld said Thursday it now expects to emerge from Chapter 11 bankruptcy in July. The world’s second-largest exhibitor had previously planned to do this ‘mid-year’.
Cineworld had filed for Chapter 11 bankruptcy protection in September to look for ways to restructure its large debt burden. Then in April it formally submitted its reorganization plan, which aimed to reduce the company’s debt by about $4.53 billion, primarily by giving lenders stock in the reorganized group in exchange for releasing their claims.
The stock market giant also considered asset sales. But it dropped plans to sell some or all of its businesses because it could not find a buyer after stressing earlier this year: the group’s operations in the US, UK and Ireland will be terminated.”
Cineworld said on Thursday its restructuring proposal now has the backing of lenders who hold about 99 percent of its legacy debt “and at least 69 percent of outstanding debt under Cineworld’s debtor-in-possession facility and some of its subsidiaries.” “
The company will formally seek final court approval for the bankruptcy restructuring on June 12.
“During the restructuring process, Cineworld will continue to operate its global operations and cinemas as usual without interruption,” the company also stressed on Thursday. “Cineworld and its brands around the world – including Regal, Cinema City, Picturehouse and Planet – continue to welcome customers to cinemas as usual. The group will continue to honor the terms of all existing customer membership programs, including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the UK.”
