Cinemex Chapter 11 plan of reorganization effective as of Dec. 18

By Sarah Lizee

Olympia, Wash., Dec. 23 – Cinemex Holdings USA, Inc.’s third amended Chapter 11 plan of reorganization became effective on Friday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Florida.

The plan, which was confirmed on Nov. 25, provides for a reorganization of the debtors as a going concern, with a reduced number of theaters to focus on profitable locations.

Holders of allowed secured claims will receive payment in full in cash, delivery of the collateral securing their claims, payment of any interest required under section 506(b) of the Bankruptcy Code, or reinstatement of their claims. The debtors said they have few to no secured claims and anticipate distributions to this class to be negligible.

Holders of syndicated bank loan claims will receive their pro rata share of the syndicated bank loan claims allocation consisting of the compromise amount of $1 million.

Holders of GUC claims in class 4 will receive their pro rata share of the GUC claims trust net assets consisting of about $5.3 million plus a variable note equal to 8% of theater-level cash flow or for the next three years net of amounts paid to allowed convenience claims, which is roughly $190,000, and amounts paid to the GUC trustee to administer the GUC trust, which is about $350,000.

Provided that to the extent GUC claims are convenience claims, holders will receive their pro rata share of the convenience claims distribution.

Holders of convenience claims, meaning holders of claims that equal $15,000 or less or that elect to reduce their claim to $15,000, will receive a cash distribution equal to 12% of its allowed convenience claim.

Intercompany claims will be canceled, discharged, released and extinguished in full.

Intercompany interests will be reinstated for administrative purposes only, with no distributions.

Interests in Cinemex Holdings will be deemed canceled, discharged, released and extinguished, also with no distributions.

Distributions will be funded with cash on hand, including cash derived from a stock purchase agreement, and the variable note.

Cinemex is a Miami-based cinema chain. The company filed bankruptcy on April 24 under Chapter 11 case number 20-14696.

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