Cineworld reaches bankruptcy settlement with its landlords and lenders

This cleared the way for the company to borrow an additional $150m and make a $1bn debt repayment.  
First reported by Reuters, landlords and junior creditors dropped their opposition to the debt repayment after Cineworld agreed to pay $20m in rent that was accrued after 30 September.  

According to the outlet, US bankruptcy judge Jarvin Houston said the agreement was a “pretty amazing” result given the widespread landlord and creditor opposition to the firm’s bankruptcy financing at the start of its Chapter 11 case.  

The judge previously approved part of its bankruptcy financing, allowing it to borrow $785m at the start of its bankruptcy case while deferring judgement on the $1bn debt repayment.  

The second-largest cinema chain in the world, the British business initially filed the Chapter 11 in September with less than $4m in cash on hand. The firm said it expects to emerge from this process, which involves its UK, US and Jersey operations, during the first quarter of 2023 and intended to pay all its vendors in full during the process as well as pay employees their usual wages.