Regal Cinemas Parent Cineworld Files for Chapter 11 Bankruptcy

Regal Cinemas’ parent company, Cineworld, is filing for Chapter 11 bankruptcy. Not too long ago, the Wall Street Journal reported that the chain’s ownership was considering the move and now it’s official. The Cineworld brass have filed in the United States Bankruptcy Court for the Southern District of Texas. The projections for this summer at the cinema were really hopeful earlier in the year. However, the box office boom that many analysts saw coming never really materialized. There have been victories, Spider-Man: No Coming Home signaled the thirst for more theatrical events. Top Gun: Maverick produced massive returns. But, a movie and a host of Marvel features making respectable numbers isn’t the “back to normal” situation people thought was on its way back in March. So it’s no surprise that Cineworld has to go this route.

“As part of the Chapter 11 cases, Cineworld, with the expected support of its secured lenders, will seek to implement a deleveraging operation that will significantly reduce the group’s debt, strengthen its balance sheet and provide the necessary financial strength and flexibility. to accelerate, and capitalize on Cineworld’s strategy in the movie business,” the second-largest movie theater chain said (h/t The Hollywood Reporter). “The Group’s Chapter 11 companies are entering Chapter 11 business with commitments for a debtor-in-possession financing facility of approximately $1.94 billion from existing lenders, which will help ensure that the operations of Cineworld will continue in the normal course as Cineworld implements its reorganization.”

The company would add: “Cineworld currently expects to exit Chapter 11 in the first quarter of 2023 and is confident that a comprehensive financial restructuring is in the best interests of the group and its stakeholders, taken as a whole, over the long term. “

“We have an incredible team across Cineworld who are focused on evolving our business to thrive during the movie industry’s comeback,” Greidinger previously told The Wall Street Journal. “The pandemic has been an incredibly challenging time for our business, with the forced closure of cinemas and huge disruptions to movie times bringing us to this point. This latest process is part of our ongoing efforts to strengthen our financial position. and continues with a deleveraging that will create a more resilient capital structure and an efficient business. This will allow us to continue executing our strategy to reinvent the most immersive cinematic experiences for our customers through the latest screen formats. and the most advanced and the improvements made to our flagship cinemas.Our objective remains to further accelerate our strategy so that we can strengthen our position as the “best place to watch a movie”.

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