Cineworld Group announced on Thursday that its proposed restructuring has the backing of lenders controlling almost all of its legacy credit lines and most of the outstanding debt under its debtor-in-possession facility. The proposed restructuring is expected to reduce indebtedness by around $4.53 billion, raise $800 million and provide $1.46 billion in new debt financing. The company is now expecting to emerge from Chapter 11 bankruptcy in July.
During the restructuring process, Cineworld has continued to operate its business and cinemas as usual. The proposed restructuring does not provide for any recovery for holders of Cineworld’s existing equity interests. Talks with potential parties to buy some or all of its business have been held, but none involve an all-cash bid for the entire company.
Cineworld’s proposed restructuring has the support of those holding and controlling 99% of the legacy credit lines and at least 69% of the outstanding indebtedness under the debtor-in-possession facility. The company is now expecting to emerge from Chapter 11 bankruptcy in July.