Cineworld, Regal’s owner and the world’s second-largest movie theater chain, intends to emerge from Chapter 11 bankruptcy in July. “By mid-year,” the corporation had planned.
Cineworld filed for Chapter 11 bankruptcy in September 2020 to reorganize its massive debt. The corporation submitted its restructuring plan in April 2021 to decrease debt by $4.53 billion. Lenders would get stock in the reconstituted organization for dropping their claims.
After trying to sell its companies, Cineworld gave up. “Absent an all-cash bid significantly in excess of the value established under the proposed restructuring, the marketing process as it relates to the group’s business in the U.S., U.K., and Ireland will be terminated,” the firm stated earlier this year.
Cineworld expects to emerge from bankruptcy in July.
Cineworld reported Thursday that lenders holding around 99% of its legacy debt “and at least 69% of the outstanding indebtedness under the debtor-in-possession facility of Cineworld and certain of its subsidiaries” supported its restructuring proposal. On June 12, the corporation will officially request bankruptcy reorganization court permission.
Cineworld kept its worldwide business and theaters running during the restructure. Regal, Cinema City, Picturehouse, and Planet remain open for business. Cineworld honors all customer membership schemes, including Regal Unlimited and Regal Crown Club in the US and Cineworld Unlimited in the UK.
Cineworld’s July bankruptcy exit is good news for the firm and its consumers. Cineworld has continued to offer world-class film experiences despite the epidemic and economic crisis. Cineworld will emerge from bankruptcy stronger and more resilient thanks to its lenders and restructuring plan.
