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Movie theater giant and Regal owner Cineworld has formally filed its recently unveiled reorganization plan to allow it to emerge from Chapter 11 bankruptcy in the near future, the company said early on Tuesday London time. It said its goal remains to do so by mid-year.
The second-largest exhibitor in the world has also been looking at a possible sale. “The group remains committed to emerging from the Chapter 11 cases as expeditiously as possible although, among other things, any sale transaction resulting from the marketing process may delay emergence beyond the first half of 2023,” the company said.
It previously said that “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.”
Observers therefore expect it to focus on proposals for the sale of its “Rest of World” business.
The proposed restructuring, which must get approved by the bankruptcy court, is designed to reduce the firm’s debt by about $4.53 billion, mainly through lenders getting equity in the reorganized group in exchange for releasing their claims. The Cineworld lenders that have agreed to the restructuring are controlling approximately 83 percent of the firm’s term loans due 2025 and 2026 and revolving credit facility due 2023, Cineworld previously said.
The firm reiterated on Tuesday that the reorganization does not provide for any relief or recovery for stockholders.
“During the restructuring process, Cineworld continues to operate its global business and cinemas as usual without interruption,” the company emphasized once again. “Cineworld and its brands around the world – including Regal, Cinema City, Picture House and Planet – are continuing to welcome customers to cinemas as usual.”
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