Cineworld’s $2.26 billion exit financing OK’d with 99.2% lender support

By Sarah Lizee

Olympia, Wash., May 3 – Cineworld Group plc received court approval of $2.26 billion in exit financing, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The deal will provide $1.46 billion of new debt financing to the company at emergence from Chapter 11, as well as $800 million in total gross proceeds through a fully backstopped equity offering.

Originally, 83% of the company’s lenders supported the deal.

As previously reported, a minority group of lenders had objected to the proposed financing. As originally proposed, the minority group of lenders were allowed to participate in the rights offering, but not in the other pieces.

The deal was later modified to allow those lenders to participate in each offering. However, they were still not allowed to participate in the backstop fees that the original 83% of lenders would receive.

At a hearing held Tuesday, counsel for the debtor said that the parties have now come to an agreement under which all lenders will participate in the backstop.

Now, lenders in the 17% minority group will share ratably in a portion of the backstop fees.

Following those discussions, the deal has gained support from 99.2% of lenders.

Cineworld is a London-based cinema operator. The company filed bankruptcy on Sept. 7, 2022 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.