Troubled UK-based exhibition giant Cineworld has said it expects to emerge from Chapter 11 bankruptcy protection in July.
The group added that its proposed restructuring plan now has the support of 99% of the lenders holding its “legacy facilities” and holders of “at least 69% of the outstanding indebtedness under the debtor-in-possession facility.”
Cineworld – the world’s second biggest exhibitor, with more than 9,000 screens in 10 countries, including the Regal chain in the US and Picturehouse in the UK – filed for Chapter 11 bankruptcy in the US last September. The final court approval of the company’s proposed restructure will be heard on June 12. The bankruptcy court approved the amended “restructuring agreement” and the “backstop commitment agreements” earlier this month. This, according to Cineworld, was “another positive step” in implementing the restructuring. The company said in a statement that “Cineworld continues its global business as usual and operates cinemas without interruption” during the restructuring process. Cineworld, along with its brands, including Regal, Cinema City and Picturehouse, continue to welcome customers into cinemas around the world.
In March, Cineworld announced that it had dropped plans to sell cinemas in the US and UK, Ireland, Eastern Europe, and Israel.
The company does not have bankruptcy protection for its operations in Poland, Czech Republic, Slovakia Hungary, Bulgaria, Romania, and Israel.