CPXGF - Cineworld looks to emerge from bankruptcy in July citing lender backing

2023-05-25 13:33:49 ET

Movie theater operator Cineworld Group ( OTCPK:CNNWQ ) is expecting to emerge from bankruptcy in July and says its proposed restructuring has the backing of most of its lenders.

The company filed for bankruptcy in the U.S. in September as it wrestled with $5B in debt, and headed into Chapter 11 with $1.94B in debtor-in-possession financing.

At that time, the chain had expected to emerge from bankruptcy protection in the first quarter of 2023.

It had initially explored selling the company but opted instead for restructuring that will wipe out shareholders.

Earlier this month it received court approval to raise $2.26B, a deal it arranged with some lenders as it works to emerge from bankruptcy. Cineworld says its plan has the support of lenders holding 99% of legacy debt, and 69% of debt under the debtor-in-possession facility.

Cineworld runs the world's second-biggest chain of movie theaters (including the Regal chain in the U.S.), behind AMC Entertainment ( AMC ) -- which has escaped a similar fate thanks to heavy fund-raising backed by an aggressive bloc of retail investors.

And Cineworld struggled with other chains during the height of the COVID-19 pandemic, which included a damaging incident when in June 2020 it abandoned a plan to acquire top Canada movie chain Cineplex ( CGX:CA ).

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