A US bankruptcy court approved Cineworld’s first day relief following the company’s Chapter 11 filing on September 7, 2022.
As part of the motion, the Court today granted the Cineworld group approval to immediately access “approximately $785 million of an approximately $1.94 billion debtor-in-possession (“DIP”) financing facility that, together with reserves of available cash from the Group and Cash provided by operations is expected to provide sufficient liquidity for Cineworld to meet its ongoing obligations, including post-petition obligations to vendors and suppliers, as well as employee salaries, wages and benefit programs,” the company said.
The London-based company added that the group’s Chapter 11 companies “intend to pay vendors and suppliers in full and on normal terms for valid amounts for goods and services received during the Chapter 11 process. Employees they will also continue to receive their regular wages and benefits without interruption.”
“Today’s approval of our ‘day one’ relief request is a positive step for the Group and our restructuring efforts,” said Mooky 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 our long-standing relationships with our partners. commercial”.
Cineworld filed for Chapter 11 in the Southern District of Texas earlier this week with a so-called DIP, or debtor-in-possession, loan from a pool of lenders to continue operating while it cleans up its balance sheet. The company is the second largest exhibitor with 751 venues in 10 countries, including the boutique chain Picturehouse in the UK and Regal Cinemas in the US.
In the announcement, the company said Cineworld and all of its brands, including Regal, Cinema City, Picturehouse and Yes Planet, continue to welcome moviegoers to theaters as usual, and that will not change during the Chapter 11 process. The group will continue to honor everyone’s terms. existing customer membership programs including Regal Unlimited and Regal Crown Club in the US and Cineworld Unlimited in the UK.