Cinema giant and shelf owner Cineworld said Thursday it now expects to emerge from Chapter 11 bankruptcy in July. So far, the world’s second largest exhibitor had aimed to achieve this “by the middle of the year”.
Cineworld filed for Chapter 11 bankruptcy protection in September to seek ways to restructure its heavy debt load. Then, in April, the company formally filed its restructuring plan, which aimed to reduce the company’s debt by about $4.53 billion, primarily by giving lenders shares in the reorganized group in exchange for the release of their claims.
The knife giant was also considering selling assets. However, the company dropped plans to sell some or all of its businesses after failing to find a buyer after emphasizing earlier in the year: “It lacks a cash offer well in excess of the value offered as part of the proposed restructuring and the… associated marketing process has been established.” The Group’s business in the US, UK and Ireland will be discontinued.”
Cineworld said Thursday its restructuring proposal has now received support from lenders who hold about 99 percent of its legacy debt “and at least 69 percent of the outstanding debt under Cineworld and some of its subsidiaries’ self-administration facility.”
The company is expected to formally seek final court approval of its bankruptcy reorganization on June 12.
“During the restructuring process, Cineworld will continue to operate its global business and its cinemas as usual without interruption,” the company also emphasized on Thursday. “Cineworld and its brands around the world – including Regal, Cinema City, Picturehouse and Planet – continue to welcome customers to theaters as usual. The group continues to respect the terms of all existing customer membership programs including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the United Kingdom.”