NCMI - U.S. court confirms National CineMedia's plan of reorganization under bankruptcy filing

2023-06-27 16:49:05 ET

National CineMedia ( NASDAQ: NCMI ) on Tuesday said its planned reorganization under its bankruptcy filing had been confirmed by a U.S. court in Texas, with the cinema advertising giant expected to exit chapter 11 in August or September this year.

NCMI stock was down 2.4% to $0.31 after hours.

The company said it plans to enter into a ~$55M exit financing facility, which will be used to fund operations. Its plan of reorganization was confirmed by the U.S. bankruptcy court for the southern district of Texas.

"Under the confirmed Plan, the Company will eliminate its debt through the equitization of its secured debt ... Upon emergence, the Company will maintain its existing corporate structure with National CineMedia Inc ( NCMI ) serving as the manager of NCM LLC," the company said in a statement .

Shares of National CineMedia ( NCMI ) had more than doubled in value back in mid-April after the company had filed for bankruptcy and had estimated liabilities of $1B-$10B against assets of $500M to $1B.

Before the bankruptcy, NCMI, like much of the movie industry, had struggled with falling revenues due to the impact of the COVID-19 pandemic on theatre attendance.

NCMI in Tuesday's statement added that its existing management team would continue to lead the reorganized company.

More on National CineMedia

• National CineMedia stock rises on advertising pact with Regal Cinemas
• National CineMedia Soared 115% With 362 Million Shares Traded: Insight Into The Ch.11 Bankruptcy Filing

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