Movie theater giant and Regal owner Cineworld said on Thursday that it now expects to emerge from Chapter 11 bankruptcy in July. The second-largest exhibitor in the world had previously targeted to do so “by mid-year.”
Cineworld had filed for Chapter 11 bankruptcy protection in September to look for ways to restructure its big debt burden. It then formally filed its reorganization plan in April, which targeted to cut the firm’s debt by about $4.53 billion, mainly through lenders getting equity in the reorganized group in exchange for releasing their claims.
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The exhibition giant considered asset sales as well. But it dropped plans to sell some or all its businesses because it failed to find a buyer after emphasizing earlier this year: “Absent an all-cash bid significantly in excess of the value established under the proposed restructuring, the marketing process as it relates to the group’s business in the U.S., the U.K. and Ireland will be terminated.”
Cineworld said Thursday that its restructuring proposal has now received the support of lenders holding about 99 percent of its legacy debt “and at least 69 percent of the outstanding indebtedness under the debtor-in-possession facility of Cineworld and certain of its subsidiaries.”
The company is scheduled to formally seek final court approval of its bankruptcy restructuring June 12.
“During the restructuring process, Cineworld continues to operate its global business and cinemas as usual without interruption,” the company also emphasized Thursday. “Cineworld and its brands around the world — including Regal, Cinema City, Picturehouse and Planet — are continuing to welcome customers to cinemas as usual. The group continues 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 U.K.”
