Regal Parent Cineworld Has Draft Plan With Lenders To Restructure, Emerge From Chapter 11; Still Taking Third-Party Bids
deadline.comCounsel for bankrupt Cineworld said today the Regal parent has received the outline of a restructuring plan from lenders, a blueprint that would take it out of bankruptcy, although it’s also still pursuing a possible sale of assets.
At a hearing at bankruptcy court in the Southern District of Texas, Cineworld attorney Joshua Sussberg said debt holders had submitted over the weekend a term sheet of a debt-for-equity exchange and a “significant” rights offering to fund the business going forward.
He didn’t provide details of the plan, which has no specific financing commitments yet. A group of 35 funds holds a combined $6 billion in Cineworld debt.
Meanwhile, the company continues with a sale process and Sussberg said has signed multiple non-disclosure agreements with interested parties including financial and strategic buyers of “all shapes and sizes and with all different kinds of proposals.” Non-binding offers are due Feb.
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