Cineworld emerges from bankruptcy with new leadership
Cineworld emerges from bankruptcy with new leadership
- The embattled group has cut its debt by $4.5 billion
- The movie theater chain also raised $800 million in new equity
- It also secured new debt financing of approximately $1.71 billion
Cineworld has emerged from Chapter 11 bankruptcy in the US after cutting debt and weathering a management shakeup.
The “New Cineworld” has reduced its debt by $4.5 billion, raised about $800 million in new equity and secured new debt financing of about $1.71 billion, the company said in a statement Tuesday.
The world’s second-largest movie theater chain after AMC Entertainment has also named former Warner Bros. chairman and CEO Ann Sarnoff to its board of directors, along with four other members to join new chairman Eric Foss and CEO Eduardo Acuna.
The ‘New Cineworld’ has reduced its debt by $4.5 billion, raised about $800 million in new equity and secured new debt financing of about $1.71 billion, the company said in a statement on Tuesday.
The new board members include managing member of Redan Advisors LLC Patrick J. Bartels, former CEO of Dine Brands Global Stephen Joyce, director at Cyrus Capital Partners Stefano Malfitano.
The movie chain operator and owner of brands such as Regal, Cinema City, Picturehouse and Planet filed for bankruptcy in the US in early September to restructure its massive debts.
The British group had pinned its hopes on blockbusters such as Top Gun: Maverick, The Batman, starring Robert Pattinson and Zoe Kravitz, and Thor: Love And Thunder to aid recovery from the Covid-19 pandemic, but ratings fell well short the expectations .
At the end of June, Cineworld announced that it would be filing for administration in the UK in July.
Filing for Chapter 11 bankruptcy means that a company intends to reorganize its debts and assets to make a fresh start, while remaining in business.
Earlier, however, Cineworld said the plan “does not foresee a recovery” for shareholders on the verge of being wiped out.
Cineworld was devastated by pandemic lockdowns that forced it to close its cinemas, having already racked up huge debts from its costly takeover of US rival Regal Cinemas in 2018.
Eric Foss, Chairman of Cineworld, said: ‘We are excited and energized by the bright future ahead and look forward to providing our valued customers with a great guest experience, filled with quality entertainment and fun.’