Cineworld asks court for permission to reject unexpired leases

Chicago, Nov. 8 – Cineworld Group plc has asked for approval to end several unexpired leases, according to a motion filed with the U.S. Bankruptcy Court for the Southern District of Texas.

In the motion, the company said that primarily due to the impact of deferred rent payments, the debtors estimate that the monthly rent obligations per theater have increased almost 30% year to date through July 2022 compared to full-year 2019.

The debtor has asked for approval to end the leases early on approximately 20 theaters.

The leases would be terminated or rejected between November and January.

Cineworld would abandon its insubstantial property at the theaters.

Rejecting the leases would save the debtors’ estate approximately $19.5 million annually.

A hearing was held Monday to consider the motion.

In connection with a reduced footprint for the debtors, Cineworld sought and obtained permission to sell property in Union City, Ga., for $1.8 million.

Cineworld is a London-based cinema operator. The company filed bankruptcy on Sept. 7 under Chapter 11 case number 22-90168.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.