Royal parent company Cineworld plans UK shareholder meeting as Texas bankruptcy continues

Giant theater chain Cineworld will hold a shareholder meeting on April 20 in connection with its Chapter 11 lawsuit, which is currently pending in a Texas bankruptcy court.

The in-person meeting is required under UK securities laws, Cineworld said today, “in circumstances where the value of the company’s net assets is less than half of its called-up share capital” – officially a “serious loss”. of capital.”

The objective – “To have shareholders consider whether and, if so, what steps should be taken to address the situation.”

However, shareholders can’t do much but “think” as they stand on the brink of being wiped out, which the company acknowledged by saying: “A reorganization plan or sale transaction is not expected to lead to a recovery for the Cineworld shareholders lead. .”

The Council convenes the General Assembly to ensure that this matter is dealt with as required by law. The Board welcomes dialogue with the company’s shareholders and the AGM will provide a forum for such discussions, but no decisions will be proposed at the AGM,” Cineworld said in a document.

The meeting in Brentford (West London) is scheduled for 10:00 local time.

Heavily indebted Cineworld filed for bankruptcy last fall, with a near-empty box office amid a slow box office recovery that has since picked up steam. The company, its creditors and creditors are working on a reorganization plan that will be presented to Judge Marvin Isgur of the U.S. Bankruptcy Court, Southern District of Texas.

A marketing process to sell the company is still on a separate, parallel track for assets including Regal in the US; Cineworld and Picturehouse in the UK and Ireland; and “Rest of the World” – or cinemas in Central and Eastern Europe and Israel.

A lawyer for the company said at a hearing last month that it had preliminary offers for assets from the “rest of the world” and some interest from strategic buyers for the entire company. Nothing from that period just for Regal. Also, “We have received no cash offers and no offers have come close to the $6 billion in secured debt on the company’s balance sheet today,” Cineworld attorney Joshua Sussberg said at the Feb. 21 hearing. He said that the final presentations should be on April 10.

Hampered by hefty lease obligations, Cineworld is partially using the Chapter 11 process to close some theaters, including some large Regal locations, and break out of other contracts.

During the hearing, the parties also discussed a tentative date of May 30 to vote on the restructuring plan that has yet to be submitted, but these matters are subject to change and may take longer than expected.