Cineworld bankruptcy judge urges royal parents to speed up theater closures, landlord negotiations – ‘We won’t hang around here forever’

Judge Marvin Isgur told the parties to Cineworld’s bankruptcy on Wednesday to speed things up as debtors and creditors set out a restructuring plan for the giant movie chain, including closing theaters, finalizing lease negotiations with landlords and advancing a general sales process.

“We’re not going to hang around forever. The debtors must be aggressive. I’m not sitting here for a year or six months to find out which stores are closing. It’s a hearing that’s going to happen now,” Isgur told the U.S. Bankruptcy Court for the Southern District of Texas, referring to theater during a hearing today.

Cineworld filed for Chapter 11 in September.

“I was very patient in this case [but] I want to see more action on what this future business will be like…We have to get on with life,” Isgur said.

Since the filing, Cineworld has closed 23 theaters and signed new leases with 25% of the owners – a percentage that clearly did not impress Isgur.

Negotiations with other landlords for “the rest of the portfolio are in full swing,” says Kirkland & Ellis bankruptcy attorney Josh Sussberg. “The management team has made it clear time and time again that they are prepared to close more theaters without landlord involvement [so] We encourage everyone to come together,” he said.

Cineworld announced yesterday that it will carry out a sales process this month which will focus on togroup proposals and discussions with interested parties. The company also dismissed comments from rival AMC Entertainment in a December filing that it was in talks with Cineworld to acquire some US and European assets. AMC then at least said the talks were over.

At the end of February, the debtors want to present a restructuring plan.

Also during the hearing, an update of the previous proceedings, Cineworld’s war of words continued with the film advertising agency National CineMedia, which has a long-term contract with Regal, one of the three founders. Sussman called National CineMedia’s offer “outdated for the modern moviegoing experience” and said Regal is currently negotiating with several other potential partners. He said a change would save the movie chain $50 million a year.

A lawyer for National CineMedia insisted at the hearing that even in the event of bankruptcy, the Regal contract was “irrevocable.”

Isgur was not so sure and said: “I would encourage you to find a solution with the debtor. I’m just trying to be rude to you.”

Sussman searched the crime scene in court and produced box office receipts Avatar: The Way of Water and said Blockbuster by James Cameron, along with titles like Top Gun: Maverick and Spider-Man: No Way Home“demonstrates one of the key assumptions of the receivables management team” — that blockbusters “will continue to drive strong revenues and audiences for movie theaters. We just need more of that.”

He slammed critics who said Regal was lagging behind on lounge seating in its movie theaters, implying that keeping the maximum number of seats available was a conscious decision. “Having the most seats and the best experience is the key.”

Isgur acknowledged the current complex and uncertain state of the exhibition industry, but said he would like a restructuring plan that as much as possible “gets it right … gets the debt right, gets the venues’ footprint right.” To put the company on the road to success We don’t want to do things halfway here.”

“It seems that this industry is in full swing more than most [that] would have ever happened with or without covid. And people need to find out what the future of the industry is. Assumptions by very smart people who can guess well. And we won’t be in a world of certainty in that case.”