A US bankruptcy court has approved Cineworld for first day relief following the company’s Chapter 11 filing on September 7, 2022.
As part of the motion, the Court today granted the Cineworld group approval to immediately access up to “approximately $785 million of an approximate $1.94 billion debtor-in-possession (“DIP”) financing facility that, together with the Group’s available 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.
The London-based company added that the group Chapter 11 companies “intend to pay vendors and suppliers in full and on normal terms for valid amounts for goods and services received during the Chapter 11 process. Employees will also continue to receive their usual wages and benefits without interruption.”
“Today’s approval of our requested ‘first day’ relief is a positive step forward for the Group and our restructuring efforts,” said Mooky Greidinger, Chief Executive Officer of Cineworld.
“As we position Cineworld for long-term growth, through this Chapter 11 process and beyond, we remain steadfast in our commitment to providing our guests with the most memorable moviegoing experiences and maintaining our long-standing relationships with our business partners.”
Cineworld filed for Chapter 11 in the Southern District of Texas earlier this week with a so-called DIP, or debtor-in-possession, loan from a consortium of lenders to keep operating while it cleans up its balance sheet. The company is the second-largest exhibitor with 751 sites in 10 countries including the boutique Picturehouse chain in the UK and Regal Cinemas in the US.
In the announcement, the company said Cineworld and all its brands – including Regal, Cinema City, Picturehouse, and yes Planet – are continuing to welcome moviegoers to theaters as usual, and that will not change during the Chapter 11 process. The group will continue to honor the terms of all existing customer membership programs, including Regal Unlimited and Regal Crown Club in the U.S. and Cineworld Unlimited in the UK.