Cineworld receives court approval for the first day of relief after filing for bankruptcy

A U.S. bankruptcy court approved Cineworld’s first day of relief after the company’s Chapter 11 filing on September 7, 2022.

As part of the motion, the court today granted Cineworld Group immediate access to “approximately $ 785 million of approximately $ 1.94 billion of Debtor Holding (” DIP “) credit line, which, together with reserves cash available from the group and liquidity from operations, should provide Cineworld with sufficient liquidity to meet its ongoing obligations, including post-petition obligations to suppliers and suppliers, as well as employee wages, salaries and program profits “said the company.

The London-based company added that the 11 group companies “intend to pay suppliers and suppliers in full and under normal terms and conditions for goods and services received in the Chapter 11 process.” Employees will also continue to receive their regular wages and benefits. “

“Today’s approval of our ‘day one’ distress call is a positive step for the group and our restructuring efforts,” said Mookie Greidinger, CEO of Cineworld.

“As we position Cineworld for long-term growth through this Chapter 11 process and beyond, we remain steadfast in our commitment to providing our guests with the most memorable cinematic experiences and maintaining long-term relationships with our customers. Business partners.”

Cineworld filed for Chapter 11 in the Southern District of Texas earlier this week with the so-called DIP loan, or borrower in possession, from a syndicate of creditors to continue operating while it cleans up its balance sheet. The company is the second largest exhibitor with 751 locations in 10 countries, including the Picturehouse boutique chain in the UK and Regal Cinemas in the US.

The company said in a statement Cineworld and all of its brands, including Regal, Cinema City, Picturehouse and yes Planet, continue to welcome viewers in theaters as usual, and this will not change in the Chapter 11 process. The group will continue to manage all subscription programs. existing customers, including Regal Unlimited and Regal Crown Club in the US and Cineworld Unlimited in the UK.