Cineworld enters into restructuring agreement with its lenders

They’ve agreed to support a proposed restructuring of the business, which includes a commitment to provide a first lien exit financing facility, and backstop an equity rights offering in connection with the proposed restructuring.  

Cineworld chief executive Mooky Greidinger said: “This agreement with our lenders represents a ’vote-of-confidence’ in our business and significantly advances Cineworld towards achieving its long-term strategy in a changing entertainment environment.   

“With a growing slate of blockbusters and audiences returning to cinemas in increasing numbers, Cineworld is poised to continue offering moviegoers the most immersive cinema experiences and maintain its position as the ’Best Place to Watch a Movie’.” 

If implemented, the proposed restructuring will reduce indebtedness by $4.53bn (£3.67bn), raise $800m (£48m) in aggregate gross proceeds, and provide $1.46bn (£1.18bn) in new debt financing.  

The proceeds of this process will be used to, among other things, repay in full the $1.94bn (£1.57bn) debtor-in-possession financing facility entered when the business started its Chapter 11 cases. It will also be used to fund the costs associated with its emergence from the Chapter 11 cases and its go-forward business operations.  

Cineworld expects to emerge from its Chapter 11 cases during the first half of 2023, with it continuing to operate its global business during the restructuring process.