BY Richard Summerfield
After nearly 11 months, Cineworld Group has exited Chapter 11 bankruptcy protection in the US. The company is emerging with a greatly reduced debt load, a new board of directors and a number of new executives.
The company has reduced its debt by $4.53bn, raising about $800m in new equity capital and securing new debt financing of around $1.71bn. As a result, it feels it is “well-positioned to pursue future strategic initiatives and continue providing leading cinematic experiences for customers globally, including through investments in new screen formats and enhancements to its flagship theatres”, according to a statement.
“With a transformed balance sheet and a right-sized capital structure, Cineworld is ready and fully able to succeed in this dynamic and constantly changing movie theatre industry,” said Eric Foss, the new chairman of the board of Cineworld. “I am truly excited to introduce the impressive group of directors who will be joining our new Board and whose expertise and leadership in various fields will help us to grow Cineworld’s business and ensure that our theatres continue to be moviegoers’ first choice for memorable cinema experiences.”
“I am honored to join Cineworld and work alongside the experienced management team to unlock the company’s great potential,” said Eduardo Acuna, the new chief executive of Cineworld. “With its talented group of employees, significant number of distinguished business partners and devoted customers around the world, Cineworld has what it needs to reach new levels of success. We will continue to put our guests at the center of everything we do and look forward to continuing to break new ground in our industry.”
In addition to Mr Foss and Mr Acuna, Cineworld has also appointed Ann Sarnoff, former chair and chief executive of Warner Bros, to its board, as well as four other new board members.
Cineworld is the world’s second largest cinema chain, and is the operator and owner of brands such as Regal, Cinema City, Picturehouse and Planet. The company and 104 of its affiliated debtors filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Southern District of Texas in early September 2022 to restructure its massive debt. The company’s existing shareholders have been wiped out as part of the financial restructuring, with a new, incorporated company controlled by lenders now controlling Cineworld.
On Monday, Cineworld Group named an administrator in the UK and had its shares delisted from the London Stock Exchange as the company prepared its Chapter 11 exit.