Regal Owner Cineworld Receives Approval for $785 Million Financing Under Chapter 11 Proceedings
Leo Barraclough International Features Editor Movie theater operator Cineworld Group, which has 9,139 screens in 10 countries, has received approval from the U.S. Bankruptcy Court for the Southern District of Texas for “first day” relief related to its Chapter 11 proceedings filed on Sept. 7. The group’s companies include Regal in the U.S. The court granted the group immediate access to up to some $785 million of an approximate $1.94 billion debtor-in-possession financing facility that, together with its cash reserves and cash provided by operations, is expected to provide sufficient liquidity for Cineworld to “meet its ongoing obligations, including post-petition obligations to vendors and suppliers, as well as employee wages, salaries and benefits programs,” the company said Friday. The remainder of the DIP facility will become available following the court’s approval on a final basis.