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Cineworld says two competitors trying to subvert marketing process
By Sarah Lizee
Olympia, Wash., Jan. 23 – Cineworld Group plc gave an update relating to the marketing process for its assets in court documents filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.
The company said the process, which started earlier this month, is well under way and comes at a critical time in its cases.
Cineworld said it still hasn’t received a response to the restructuring proposal it gave to an informal group of creditors on Dec. 1.
As a result, the company has made the marketing process its main focus.
The debtors and their advisers have reached out to over 30 potential transaction parties, including many of their competitors.
Confidentiality agreements have been executed with a number of these parties.
Cineworld, in conjunction with the informal creditor group and the official committee of unsecured creditors, established a deadline of Feb. 16 for parties to submit non-binding indications of interest.
If it is determined that one or more indications of interest represent a potential value-maximizing proposition, a second phase of the process will start with the solicitation of binding offers.
Cineworld said some of the parties it reached out to, including two competitors, have attempted to engage directly with the informal creditor group or some lenders, in an attempt to undermine the debtor’s process.
“While the final DIP order provides the ad hoc group with certain consultation rights with respect to the marketing process, it is the debtors – and the debtors alone – who conduct and manage the marketing process, all in accordance with their fiduciary duties,” the company said.
“There will be no back door.”
The company told the court it is available for a status conference to discuss the matters.
Cineworld is a London-based cinema operator. The company filed bankruptcy on Sept. 7 under Chapter 11 case number 22-90168.
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