25th May 2023 10:35
(Alliance News) - Cineworld Group PLC on Thursday said it expects to emerge from Chapter 11 proceeding in July and, during its restructuring process, will continue to operate as usual.
The company said its proposed restructuring now has the support of its lenders holding 99% of its legacy facilities and 69% of its outstanding indebtedness.
This follows further lenders under the company's term loans due 2025 and 2026 and its revolving credit facility due 2023 acceding to amend and restate versions of the restructuring support agreement and the backstop commitment agreement originally filed with the US bankruptcy court.
In addition, the bankruptcy court has approved the terms of the backstop commitment agreement. Cineworld noted that this marked "another positive step" towards the implementation of its proposed restructuring.
The cinema chain reaffirmed that, in light of its existing debt level, the proposed restructuring does not provide for any recovery for holders of its existing equity interests.
Shares in Cineworld were down 2.7% at 1.05 pence on Thursday morning in London.
By Heather Rydings, Alliance News senior economics reporter
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