Cineworld to leave bankruptcy after backing from lenders

The struggling cinema chain’s future had been left in doubt after making a Chapter 11 bankruptcy filing late last year after a slower than expected recovery from the pandemic amid a lack of blockbusters and weaker than expected sales.  

The business now says its proposed restructuring of group now has the support of lenders holding and controlling approximately 99% of the legacy facilities and at least 69% of the outstanding indebtedness under the debtor-in-possession facility of Cineworld and some of its subsidiaries.  

This restructuring plan, it’s said, 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 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.