Exciting news for Regal parent Cineworld! CEO Mooky Greidinger and other executives have agreed to a payout in the $30 million range if they leave the company as it prepares to exit Chapter 11. This contingency consultancy agreement was previously signed with lenders to ensure a swift exit from bankruptcy proceedings. While there’s been no final decision on who will run the company, it’s likely that current management will exit.
In other news, Cineworld is expected to emerge from Chapter 11 in the first half of July, with a confirmation date set for late June. However, the proceedings today were mostly taken up with protests by non-inside shareholders who saw their investments erased.
According to the FT, lenders have agreed to pay Greidinger, his brother, and other members of their executive team a total of between $30 million and $35 million. This comes after Cineworld racked up significant debt from a string of acquisitions, including Regal in 2017, and was unable to weather the hit from Covid.
But things are looking up for Cineworld, as it announced a plan to raise $2.26 billion as part of its bid to exit bankruptcy after reaching a settlement with a group of minority lenders in May. Stay tuned for more updates on this exciting development!
