UK-based global theater chain and parent of Regal Cinemas said overnight it expects to emerge from Chapter 11 in July. The news comes as nearly 100% of its legacy lenders agreed to an amended and restated restructuring agreement and backstop that have been months in the making.
There had been some holdouts. The giant exhibitor filed for Chapter 11 last September in U.S. Bankruptcy Court in the South District of Texas.
The proposed restructuring “now has the support of lenders holding and controlling approximately 99% of the Legacy Facilities and at least 69% of the outstanding indebtedness under the debtor-in-possession facility of Cineworld and certain of its subsidiaries,” the company said in an announcement overnight.
The court approved the terms and told the parties to move ahead. As previously announced, given the magnitude of Cineworld’s debt, the plan doesn’t provide any recovery for Cineworld shareholders – who are left holding the bag as the stock dwindled to near nothing and will now likely be delisted.Read more on deadline.com