Cineworld Expects to Emerge from Chapter 11 in July, Nearly All Legacy Lenders Agree to Restructuring Deal

Cineworld, Parent Company of Regal Cinemas, Set to Emerge from Chapter 11 in July

After months of negotiations and restructuring efforts, UK-based global theater chain Cineworld, the parent company of Regal Cinemas, announced that it expects to emerge from Chapter 11 bankruptcy in July. This news comes as nearly 100% of its legacy lenders have agreed to an amended and restated restructuring agreement, marking a significant step towards financial stability for the company.

The restructuring plan, which now has the support of lenders holding and controlling approximately 99% of the Legacy Facilities, will not provide any recovery for shareholders due to the magnitude of Cineworld’s debt. The company filed for Chapter 11 bankruptcy last September in the U.S. Bankruptcy Court in the South District of Texas, as its financial situation became untenable amidst the global pandemic and slow box office recovery.

Despite exploring a sale process for its assets, Cineworld found the offers to be too low relative to its debt, leading to the decision to move forward with the restructuring plan. The company remains committed to emerging from Chapter 11 as quickly as possible and continues to operate its global business and cinemas without interruption.

As the dust settles for the newly restructured company, there may be changes in management and a clearer picture of the company’s future. With the support of its lenders and a plan in place, Cineworld is hopeful for a successful emergence from Chapter 11 in July.