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 mulling over the move and now it's official. Cineworld brass filed with the United States Bankruptcy Court for the Southern District of Texas. Projections for this summer at the movie were really hopeful earlier in the year. However, the box office boom that many analysts saw coming never really materialized. There have been some wins, Spider-Man: No Way Home signaled the hunger for more theatrical events. Top Gun: Maverick has delivered massive returns. But, one movie and a host of Marvel features doing respectable numbers is not the "back to normal" situation that people thought was on the way back in March. So, it comes as little surprise that Cineworld would have 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 de-leveraging transaction that will significantly reduce the group's debt, strengthen its balance sheet and provide the financial strength and flexibility to accelerate, and capitalize on, Cineworld's strategy in the cinema industry," the second-largest movie theater chain said (h/t The Hollywood Reporter). "The group Chapter 11 companies enter the Chapter 11 cases with commitments for an approximate $1.94 billion debtor-in-possession financing facility from existing lenders, which will help ensure Cineworld's operations continue in the ordinary course while Cineworld implements its reorganization."
The firm would add, "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'."
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