Cineworld wants to move combined plan, statement hearing to June 28

By Sarah Lizee

Olympia, Wash., May 24 – Cineworld Group plc is seeking to push back the combined hearing on confirmation of its Chapter 11 plan of reorganization and final approval of the related disclosure statement to June 28 from June 12, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The company said the additional time will allow it to continue working with all parties in interest to finalize the plan.

Cineworld said the motion is supported by the U.S. trustee overseeing the case, the official committee of unsecured creditors, and an informal group of creditors that includes all of its debtor-in-possession lenders.

As previously reported, the company entered into a restructuring support agreement and a backstop commitment agreement last month with lenders holding about 83% of the group’s term loans due 2025 and 2026 and revolving credit facility due 2023.

The lenders have committed to provide a first-lien exit facility and backstop an equity rights offering in connection with the proposed restructuring.

The restructuring is expected to reduce the group’s funded debt by about $4.53 billion, principally through lenders under the legacy facilities receiving equity in the reorganized group in exchange for the release of their claims under the legacy facilities.

The group will raise $800 million in total gross proceeds through a fully backstopped equity offering to the legacy lenders and a direct equity offering to certain legacy lenders.

The restructuring will also provide $1.46 billion, net of original issue discount, of new debt financing to the group upon emergence from the Chapter 11 cases.

Cineworld is a London-based cinema operator. The company filed bankruptcy on Sept. 7, 2022 under Chapter 11 case number 22-90168.

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