The Cineworld cinema chain has secured a new revolving credit facility of $250 million as part of its restructuring process.
The restructuring will “transform the group’s balance sheet and provide it with significant additional liquidity to fund its long-term strategy,” Cineworld said. It will involve the release of approximately $4.53 billion of the group’s funded indebtedness, the execution of a rights offering to raise gross proceeds of $800 million and the provision of $1.71 billion in new debt financing, which “includes a new revolving credit facility of $250 million that has been secured since the company’s previous announcements,” the group revealed in a statement on Friday. The restructuring does not provide for any recovery for holders of Cineworld’s existing equity interests, the group said.
The restructuring continues with the board of directors approving the decision to appoint administrators. The group has subsequently applied to the High Court in London for an administration order under the Insolvency Act 1986.
In addition, following an application by Cineworld to the U.K.’s Financial Conduct Authority (FCA), the group has confirmed that the listing of its ordinary shares on the premium listing segment of the Official List of the FCA and the admission to trading of the shares on the London Stock Exchange main market for listed securities will be suspended with effect from 8.00 a.m. London time on July 28.
Cineworld Group and its subsidiaries had commenced Chapter 11 cases in the United States Bankruptcy Court in September 2022. The group now expects to emerge from the Chapter 11 cases by July 31 and will continue to operate its cinemas as usual without interruption, it said in May.
Cinepolis cinema chain boss Eduardo Acuna is set to take over as the new CEO of the group.
The Cineworld group owns Regal Cinemas in the U.S.
