Regal Cinemas Owner Cineworld Reveals Agreement to Emerge From Bankruptcy Proceedings
variety.comNaman Ramachandran Debt-laden exhibition giant Cineworld group and its subsidiaries have entered into a restructuring support agreement and a backstop commitment agreement with lenders holding and controlling approximately 83% of the group’s term loans due 2025 and 2026 and revolving credit facility due in 2023.
If implemented, the proposed restructuring is expected to reduce the group’s Chapter 11 companies’ funded indebtedness by approximately $4.53 billion, principally through lenders receiving equity in the reorganised group in exchange for the release of their claims.
It is also expected to raise $800 million in aggregate gross proceeds, through a fully backstopped equity offering to the legacy lenders and a direct equity offering to them.
In addition, it will provide $1.46 billion in new debt financing to the Chapter 11 Companies upon their emergence from the Chapter 11 cases.
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