Cineworld Group, the world’s second-largest film chain operator and owner of Regal Cinemas, has filed for Chapter 11 bankruptcy, according to a company statement.
Axios reported that Cineworld, which said last month it was contemplating bankruptcy, had filed the Chapter 11 case in U. S. Southern District Bankruptcy Court. USA
Cineworld said in its post that its venues, adding the Regal Majestic at 900 Ellsworth Drive in downtown Silver Spring, will remain open.
Last month, Regal Cinemas, which operates in 10 countries, including the United States and the United Kingdom, said the lack of big-budget films was having a negative effect on admissions and could last until November, he warned. an imminent bankruptcy declaration.
Regal Cinemas has closed its 500 venues twice in the wake of the COVID-19 pandemic, following a cascade of postponements of big-budget Hollywood films.
“We’re like a grocery store that doesn’t have vegetables, fruits, meat,” Cineworld CEO Mooky Greidinger said in an October 2020 interview with the Wall Street Journal. “We can’t function for long without a product. “
Regal Cinemas’ domain locations come with Regal Majestic, which was renovated in 2017, as well as theaters in Rockville, Germantown, Laurel, Bowie and Hyattsville, Washington, D. C. , and Arlington, Virginia.
The company’s full is below:
Cineworld Group plc and its subsidiaries (the “Group”) (LSE: CINE), a leading cinema operator in 10 countries, adding the United States and the United Kingdom, with 747 locations and 9,139 screens worldwide, announced that Cineworld and its subsidiaries’ insurance (collectively, the “Chapter 11 Group Companies”) have filed Chapter 11 lawsuits in U. S. Bankruptcy Court. U. S. District for the Southern District of the United States, Texas (the “Court”).
As part of the Chapter 11 cases, Cineworld, with the expected help of its secured lenders, will seek to implement a leverage reduction operation that will particularly reduce the Group’s indebtedness, balance sheet and provide the monetary strength and flexibility needed to accelerate, and capitalize on, Cineworld’s strategy in the film industry. The group’s Chapter 11 corporations are entering the Chapter 11 business with commitments for a debtor line of credit in possession of approximately $1. 94 billion from existing lenders, which will help ensure Cineworld’s operations continue on the overall course as Cineworld kicks in motion its reorganization. .
As announced in the past, any deleveraging transaction is expected to result in a very significant dilution of existing holdings in the Group and there is no guarantee of recovery for holders of existing holdings. The Company does not expect that the filing of Chapter 11 will result in the suspension of the listing of its shares on the London Stock Exchange.
The Group’s Chapter 11 corporations expect to register a proposed reorganization plan (the “Plan”) with the Court in due course and meet the needs to exit Chapter 11 as temporarily as possible. Cineworld recently anticipates the launch of Chapter 11 in the first quarter of 2023 and is convinced that a complete monetary restructuring is in the interest of the Group and its stakeholders, as a whole, in the long term. Cineworld looks forward to working with its creditors and stakeholders to advance the Group’s restructuring efforts. your balance sheet.
As part of its restructuring process, Cineworld plans to pursue a real estate optimization strategy in the U. S. It intends to interact in collaborative discussions with U. S. homeowners. U. S. for Movie Theater Rental Situations in the U. S. The U. S. Department of Homeland Security in order to further position the Group for long-term growth.
Chapter 11 is a court-supervised procedure that will provide a forum for an effective reorganization of the Group’s business and balance sheet. corporate and group operations would likely continue uninterrupted.
By filing a Chapter 11 Claim for Relief, Chapter 11 corporations obtain an “automatic stay” that opposes any legal action or recovery of a claim prior to the application. Cineworld plans to operate its global operations and cinemas at the same time as this process.
Cineworld subsidiaries and affiliates engaged in U. S. operationsThe U. S. , U. K. , or Jersey have been included in the registry and are part of the Chapter 11 process.
Mooky Greidinger, CEO of Cineworld, said: “We have an incredible team across Cineworld Laser that aims to evolve our business to thrive as the film industry returns. The pandemic has been an incredibly complicated time for our business, with the forced closure of cinemas and a massive disruption in movie schedules that has brought us to this point. This new procedure is part of our ongoing efforts for our monetary position and aims at deleveraging that will create a more resilient capital design and effective business. This will allow us to continue executing our strategy to reinvent the most immersive film reporting for our consumers through the newest and most complex screen formats and enhancements to our flagship cinemas. Our purpose remains to further drive our strategy so that we can position ourselves as “best position to see a movie. “
As usual
During the restructuring process, Cineworld plans to operate its global operations and cinemas as before without interruption. Parallel to the filing of the Chapter 11 cases, the Group’s Chapter 11 corporations filed some of the same “day one” petitions to download the required files. judicial authority so that the organization can continue to function in the general course without disturbing its customers, suppliers, suppliers or workers as much as possible. The Group’s Chapter 11 corporations intend to pay all merchants and suppliers on general terms valid for goods and facilities by winning the Chapter 11 process. In addition, the Group expects workers to continue to achieve their same previous wages and benefits without interruption.
Cineglobal has secured commitments for a debtor-in-possession (“DIP”) financing facility of approximately $1. 94 billion obtained through certain existing lenders, to be used, among other things, to finance operations of the organization and refinance certain debts. funded through pre-petition. Subject to the Court’s approval, the DIP financing, in combination with the Group’s available cash reserves and cash raised through operations, is expected to provide Cineglobal with sufficient liquidity to meet its existing obligations, adding forthcoming obligations. on-call for vendors and suppliers, as well as wage, salary and benefit programs for workers. Cineglobal and its brands around the world, in addition to Regal, Cinema City, Picture House and yes Planet, continue to welcome consumers to theaters as usual, which it will not replace during the Chapter 11 matters. continue to abide by the terms of all existing visitors club programs, adding Regal Unlimited and Regal Crown Club in the US and Cineglobal Unlimited in the UK. Mooky Greidinger added: “I am deeply appreciative of our stakeholders’ continued help throughout this proceeding and beyond, adding our committed team members, visitors and steadfast members. We look forward to getting visitors and members with the most productive film reports for years to come. The remarkable good fortune of recent blockbusters like Spider-Man: No Way Home; There is no time to die; Top Gun: Maverick; Dunes; Minions: The Rise of Gru; Thor: Love and Thunder and others obviously turns out that other people love to go to the videos and once the source of the product comes back, our business will get the advantages.
More about the restructuring process
Given the foreign nature of the Group’s activities, certain facets of the deleveraging transaction to be carried out in Chapter 11 cases may require auxiliary implementation procedures beyond Chapter 11 cases. this case, and any final resolution will be subject to a number of factors, and no resolution has been made about the timing of such proceedings. However, any ancillary implementation procedure that may also be used through the Group in this case may also simply include, among other things, a restructuring plan or settlement scheme under Part 26A or Part 26 (respectively) of the UK Companies Act 2006, or other ancillary proceedings in the UK or other key jurisdictions parallel to the 11 bankruptcy instances to achieve the objectives. of restructuring. An additional update on this point will be provided in due course.
The lenders offering the DIP financing also agreed to provide financing through the DIP financing for the acquisition through a Group company of new form of the notable commitments under the Rest of the World Facility (i. e. the complex facility to finance the Group’s operations in Poland, Romania, Hungary, Czech Republic, Bulgaria, Slovakia and Israel). This debt movement is expected to take a position in the short term, after which the newly formed Group company will be the only lender under the Rest of the World credit line. It is expected that the terms of the Rest of the World Fund will be further modified at this stage. To facilitate the implementation of this agreement, existing lenders under the Fund for the Rest of the World have agreed to temporarily refrain from exercising some of their rights activated through Chapter 11 deposits. As a result of those agreements, the remaining entities in the global organization will not initiate Chapter 11 instances or any local proceedings at this time. The update will be provided in due course.
Additional data on Chapter 11 instances (including copies of all documents submitted in Chapter 11 instances) can be obtained in https://instances. ra. kroll. com/cineworld.
PJT Partners LP provides monetary advice, Kirkland
The user in charge of organizing the publication of this announcement is Scott Brooker, secretary of the company.
file photo
– Cineworld (@cineworld) September 7, 2022
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