Cineworld Reaches Conditional Agreement With Lenders To Emerge From Chapter 11
deadline.comRegal owner Cineworld has entered into a restructuring support agreement and a backstop commitment agreement with lenders that will, if approved, see it emerge from bankruptcy.
The exhibition giant also noted today that it has received non-binding proposals for some or all of the group’s assets but determined that absent an all-cash bid significantly in excess of the value established under the proposed restructuring, it will cease seeking a buyer for its businesses in the U.S., UK and Ireland.
The chain will continue to consider the proposals received for its “rest of world” business. A process is underway with the bidders for those holdings to assess whether an acceptable sale transaction can be completed.
If the proposed restructuring is implemented, it is expected to reduce the group chapter 11 companies’ funded indebtedness by approximately $4.53 billion, principally through lenders under the legacy facilities receiving equity in the reorganized group in exchange for the release of their claims.
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