Cineworld Reveals $250 Million Credit Facility, Share-Trading Suspension as Restructuring Moves Forward
variety.comNaman Ramachandran The multinational Cineworld cinema chain has secured a new revolving credit facility of $250 million as part of its restructuring process.
Cineworld recently revealed details of a planned restructuring that will allow it to exit U.S. Chapter 11 bankruptcy strictures.
The U.K.-listed company owns or operates cinemas in the U.K., continental Europe and the U.S.’s Regal chain. While existing shareholders are largely wiped out, the restructuring moves include an $800 million rights issue, the release of some $4.35 billion of the group’s funded indebtedness and the provision of $1.71 billion of new debt financing.
Within those new borrowings is a revolving credit facility secured since the group’s last statement a few weeks ago. The restructuring will “transform the group’s balance sheet and provide it with significant additional liquidity to fund its long-term strategy,” Cineworld said in a statement on Friday.
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