Cineworld Ordered to Fast Track Closing More Theaters During Bankruptcy Hearing

A bankruptcy judge has told Cineworld that they need to fast track the closing of more theaters as well as their overall restructuring plan during their latest hearing. On Wednesday, Judge Marvin Isgur, a bankruptcy court judge for the Southern District of Texas, told the theater chain that the court would "not stick around forever" and that the process of dealing with debtors and creditors needed to accelerate, which includes figuring out what theaters will be closing as well as wrapping up lease negotiations with landlords. Cineworld initially filed for Chapter 11 in September 2022.

"We are not going to stick around forever. The debtors need to be aggressive. I am not sitting here for a year, or for six months, to figure out what shops are closing That is a process that is going to happen now," Isgur said. "I have been very patient in this case [but] I want to see more action in terms of what this future company is going to look like… We need to move on with life."

Since Cineworld's filing in September, the chain has closed 23 theaters, according to Deadline, as well as reached new lease agreements with a quarter of landlords, but it's a number that the judge isn't exactly pleased with. Per Cineworld's attorney, Josh Sussberg of Kirkland & Ellis, negotiations with other landlords for the rest of the chain's portfolio are "well underway".

"The management team has made it clear time and time again it is willing to close additional theaters absent landlord engagement [so] we encourage everyone to come together," Sussberg said.

According to Deadline, the debtors indicate that they are looking to present a restructuring plan at the end of February.

Cineworld is the parent company of Regal Cinemas. When Cineworld first filed for Chapter 11 in September 2022, the company indicated that that they anticipated emerging from Chapter 11 early in 2023.

"Cineworld currently anticipates emerging from Chapter 11 during 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, in the long term."

"We have an incredible team across Cineworld laser-focused on evolving our business to thrive during the comeback of the cinema industry," Greidinger previously told The Wall Street Journal. "The pandemic was an incredibly difficult time for our business, with the enforced closure of cinemas and huge disruption to film schedules that has led us to this point. This latest process is part of our ongoing efforts to strengthen our financial position and is in pursuit of a de-leveraging that will create a more resilient capital structure and effective business. This will allow us to continue to execute our strategy to reimagine the most immersive cinema experiences for our guests through the latest and most cutting-edge screen formats and enhancements to our flagship theatres. Our goal remains to further accelerate our strategy so we can grow our position as the 'best place to watch a movie'."

What do you think of the latest update about Cineworld's bankruptcy?