Cineworld has emerged from Chapter 11 bankruptcy in the US after slashing its debts and enduring a management shake-up.
The ‘New Cineworld’ has cut its debt by $4.5billion, raised about $800million in new equity capital and secured new debt financing of about $1.71billion, the company said in a statement on Tuesday.
The world’s second largest cinema chain operator behind AMC Entertainment has also appointed former chair and CEO of Warner Bros Ann Sarnoff to its board, along with four other members to join new chairman Eric Foss and CEO Eduardo Acuna.
The ‘New Cineworld’ has cut debt by $4.5billion, raised about $800million in new equity capital and has secured new debt financing of about $1.71billion, the company revealed in a statement
The new board members include the managing member of Redan Advisors LLC Patrick J. Bartels, the former CEO of Dine Brands Global Stephen Joyce, principal at Cyrus Capital Partners Stefano Malfitano.
The movie chain operator and owner of brands such as Regal, Cinema City, Picturehouse and Planet filed for bankruptcy in the US in early September to restructure its massive debts.
The British group had pinned its hopes on blockbusters such as Top Gun: Maverick, The Batman, featuring Robert Pattinson and Zoe Kravitz, and Thor: Love And Thunder to aid its recovery from the Covid-19 pandemic, but audience numbers were well below expectations.
Towards the end of June, Cineworld revealed that it would file for administration in the UK in July.
Filing for a Chapter 11 bankruptcy means a company intends to reorganise its debts and assets to have a fresh start, while remaining in business.
However, Cineworld previously said that the plan ‘does not provide for any recovery’ for shareholders who are set to be wiped out.
Cineworld was devastated by pandemic lockdowns forcing it to shut down its cinemas, having already racked up enormous debts through the costly takeover of US rival Regal Cinemas in 2018.
Eric Foss, chairman of Cineworld, said: ‘We are excited and energised by the bright future ahead of us and look forward to delivering a great guest experience to our valued customers, filled with high-quality entertainment and fun.’
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