Regal Owner Cineworld Receives Approval for ‘First Day’ Relief on Chapter 11 Proceedings
variety.comLeo Barraclough International Features Editor Movie theater operator Cineworld Group, which has 9,139 screens in 10 countries, has received approval from the U.S.
Bankruptcy Court for the Southern District of Texas for “first day” relief related to its Chapter 11 proceedings filed on Sept.
7. The group’s companies include Regal in the U.S. The court granted the group immediate access to up to some $785 million of an approximate $1.94 billion debtor-in-possession financing facility that, together with its cash reserves 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 wages, salaries and benefits programs,” the company said Friday.
The remainder of the DIP facility will become available following the court’s approval on a final basis. Summarizing, Cineworld said the approval will allow the group’s companies to “pay vendors and suppliers in full and on normal terms for valid amounts for goods and services received during the Chapter 11 process.
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