Regal Owner Cineworld UK regulator Restructuring cinema chain – The Hollywood Reporter
The regal owner Cineworld Group will apply for management in the UK and delist its shares from the London Stock Exchange.
In the latest update on its restructuring plan, Cineworld said its business will not be affected by the US bankruptcy protection plan in July because of assets in the movie theater chain. will be transferred to a newly incorporated company controlled by the lender.
Cineworld reiterated that the company will operate as usual as it races to finalize its proposed restructuring to reduce its mounting debt burden. “The group and their brands around the world – including Regal, Cinema City, Picturehouse and Planet – are continuing to welcome customers to cinemas as usual,” the exhibitor said in the update. My Chapter 11.
However, behind the scenes, Cineworld, upon completion of the proposed restructuring, will not be interested in the newly established company or participate in the rescue of the company after the existing shareholders and equity that they hold is wiped clean.
The proposed restructuring, when completed, would restore Cineworld’s balance sheet by writing off approximately $4.53 billion of debt, fulfilling a grant request to raise approximately $800 million in capital new shares and provide $1.46 billion in new debt financing.
Cineworld filed for Chapter 11 bankruptcy protection in September 2022 to restructure the overall debt burden. The company then formally submitted its reorganization plan in April 2023, which aims to cut the company’s debt by about $4.53 billion, mainly through lenders receiving capital. Owners in the group are reorganized in exchange for releasing their claims.
The Chapter 11 filing follows Cineworld’s failure to find a buyer for some or all of its exhibit content. On Monday, shares of Cineworld fell 21 pence, or 28%, to 53 pence on the LSE market.
