Cineworld Group applies for administration, gets $250 million exit revolver

By Sarah Lizee

Olympia, Wash., July 28 – Cineworld Group plc has decided to apply for administration in the High Court in London as part of its restructuring, according to a London Stock Exchange notice.

The company expects to enter administration and to emerge from Chapter 11 bankruptcy on July 31.

The administration application applies only to Cineworld Group itself, as the listed parent company of the group, and not to any of the operating companies or subsidiaries in the rest of the group.

The company said the restructuring, when implemented by way of an administration process, will transform the group's balance sheet and provide it with significant additional liquidity to fund its long-term strategy.

In particular, the restructuring will involve the release of about $4.53 billion of the group's funded debt, the execution of a rights offering to raise gross proceeds of $800 million and the provision of $1.71 billion in new debt financing, which includes a new $250 million exit revolver that the company said it recently secured.

Terms of the revolver were not given in the notice.

The company reiterated that, given the level of existing debt that is expected to be released under the plan, the restructuring doesn’t provide for any recovery for holders of Cineworld's existing equity interests.

Cineworld also confirmed that trading of its shares on the London Stock Exchange is being suspended.

The company said the group continues to operate its global business and cinemas as usual without interruption.

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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