National CineMedia Files For Chapter 11
deadline.comThe nation’s biggest movie theater advertising network National CineMedia said tonight it’s filed a voluntary Chapter 11 petition in U.S.
District Court in the Southern District of Texas – where one of its biggest shareholders and customers, Regal parent Cineworld, has just presented a restructuring plan to emerge from bankruptcy itself.
Cineworld filed in September and hopes for approval in late May. National Cinemedia’s proceedings should go faster as it filed with a comprehensive restructuring agreement already in hand and supported by secured lenders that it says provides “a clear roadmap…to quickly emerge without disrupting its operations or customer relationships.” The move is not a shock.
The company recently missed and then extended several times the grace period on an interest payment originally due in mid-February, putting it technical default already with big ratings agencies and prompting speculation about a possible Chapter 11 or out-of-court restructuring.
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