Cineworld eyes chapter exit in July as most lenders again restructuring plan By Reuters

© Reuters. FILE PHOTO: A Cineworld in Leicester Sq., London, Britain, October 4, 2020. REUTERS/Henry Nicholls

(Reuters) -Cineworld expects to emerge from Chapter 11 chapter safety in July, the British cinema chain operator stated on Thursday, including that its proposed debt restructuring has the backing of most of its lenders.

The world’s second largest film theatre chain operator after AMC Leisure (NYSE:) filed for U.S. chapter safety in September hoping to restructure its large debt.

Cineworld, proprietor of Regal in the US and Picturehouse, Planet and Cinema Metropolis throughout Europe, had scrapped plans to promote some or all its companies after failing to discover a purchaser.

It as a substitute opted for a restructuring plan that can wipe out its shareholders.

Shares within the firm, which can seemingly be delisted after the chapter course of, have misplaced greater than 99% of their worth since hitting a peak of 310 pence six years in the past.

They have been buying and selling at 1 pence on Thursday.

After years of growth via acquisitions that additionally loaded its stability sheet with debt, Cineworld hit a significant snag when the pandemic shut its cinemas and halted releases of blockbluster motion pictures.

As well as, its deserted plan to take over rival Cineplex has triggered a C$1.23 billion ($919.83 million) damages declare for strolling away from the deal.

Earlier this month, Cineworld obtained U.S. court docket approval to boost $2.26 billion as a part of its bid to exit chapter, after reaching a settlement with a minority faction of lenders that had opposed elements of the exit financing.

The British firm stated the restructuring plan obtained the help of lenders holding about 99% of its legacy debt amenities and at the least 69% of its excellent indebtedness beneath the debtor-in-possession facility.

It’s scheduled to hunt remaining court docket approval of its chapter restructuring on June 12.

($1 = 1.3372 Canadian {dollars})

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