Cineworld, the world’s second largest cinema chain, has announced its proposed restructuring plan following Chapter 11. While the company expects to file for administration of its listed entity Cineworld plc in the UK, its operating companies will continue business as usual without interruption. Don’t worry, this is just an insolvency process similar to bankruptcy. The restructuring plan will transform the group’s balance sheet and provide it with significant additional liquidity to fund its long-term strategy. This includes the release of approximately $4.53 billion of the group’s funded indebtedness, the execution of a rights offering to raise gross proceeds of $800 million, and the provision of $1.46 billion in new debt financing.
Although the proposed restructuring plan does not provide for any recovery for holders of Cineworld’s existing equity interests, it will not affect the status or rights of any of the group’s employees. Cineworld Group also expects to cancel its London listing and share trading at 8:00am on the business day following the actual appointment of administrators.
But don’t worry, Cineworld continues to operate its global business and cinemas as usual, and this will not be affected by the entry of Cineworld Group plc into administration. The group and its brands, including Regal, Cinema City, Picturehouse, and Planet, are continuing to welcome customers, and the terms of all existing membership programs continue to be honored.
As FilmmakerFocus reported earlier this month, executives of Cineworld, led by CEO Mooky Greidinger, have agreed to a payout in the $30 million range, in the event that they leave the company as it prepares to exit Chapter 11. So, grab your popcorn and enjoy the show!
