Cineworld Receives Court Approval for “First Day” Relief

Rhea-AI Summary

Cineworld Group plc has received approval from the United States Bankruptcy Court for $785 million of a $1.94 billion debtor-in-possession (DIP) financing facility to support ongoing operations amid Chapter 11 proceedings, initiated on September 7, 2022. This financing will ensure liquidity for paying vendors, suppliers, and employee wages. Cineworld's operations remain uninterrupted globally, with full service continuing at all cinemas. The CEO described the approval as a positive step towards restructuring for long-term growth.

Positive

• Approval of $785 million from a $1.94 billion DIP financing facility.
• Continued operations and service at cinemas globally.
• Ongoing payment to vendors, suppliers, and employees without interruption.

Negative

• None.

Obtains approval to immediately access up to approximately $785 million of an approximate $1.94 billion DIP financing facility to, among other things, support ongoing operations

Group cinemas remain open globally to guests and members; operations to continue without interruption

LONDON--(BUSINESS WIRE)-- Cineworld Group plc and its subsidiaries (the “Group”) (LSE: CINE), a leading cinema operator in 10 countries, including the United States and the United Kingdom, with 747 sites and 9,139 screens globally, today announced that Cineworld and certain of its subsidiaries (collectively, the “Group Chapter 11 Companies”) have received approval from the United States Bankruptcy Court for the Southern District of Texas (the “Court”) for “first day” relief related to its Chapter 11 proceedings filed on September 7, 2022.

As part of these motions, the Court today granted the Group immediate access to up to approximately $785 million of an approximate $1.94 billion debtor-in-possession (“DIP”) financing facility that, together with the Group’s available 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 remainder of the DIP facility will become available upon Court approval on a final basis.

The Group Chapter 11 Companies intend to pay vendors and suppliers in full and on normal terms for valid amounts for goods and services received during the Chapter 11 process. Employees will also continue to receive their usual wages and benefits without interruption.

Cineworld and its brands around the world – including Regal, Cinema City, Picture House and yes Planet – are continuing to welcome moviegoers to cinemas as usual, which will not change during the Chapter 11 cases. The Group will continue to honour the terms of all existing customer membership programs, including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the United Kingdom.

“Today’s approval of our requested ‘first day’ relief is a positive step forward for the Group and our restructuring efforts,” said Mooky Greidinger, Chief Executive Officer of Cineworld. “As we position Cineworld for long-term growth, through this Chapter 11 process and beyond, we remain steadfast in our commitment to providing our guests with the most memorable moviegoing experiences and maintaining our long-standing relationships with our business partners.”

For more information on the Group Chapter 11 Companies’ restructuring, including access to Court documents, please visit https://cases.ra.kroll.com/cineworld or call 844-648-5574 (toll-free in United States/Canada) and +1 845-295-5705 (for tolled international calls).

About Cineworld

Cineworld was founded in 1995 and is now one of the leading cinema groups in Europe. Originally a private company, it re-registered as a public company in May 2006 and listed on the London Stock Exchange in May 2007. Currently, Cineworld is the only quoted United Kingdom cinema business. Cineworld’s acquisition of Regal Entertainment Group has created the second largest cinema business in the world (by number of screens). Cineworld currently operates in the United Kingdom, Ireland, Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania, Israel and the United States.

Important information

This announcement is not intended to and does not constitute and should not be construed as, considered a part of, or relied on in connection with any information or offering memorandum, security purchase agreement, or offer, invitation or recommendation to underwrite, buy, subscribe for, otherwise acquire, or sell any securities or other financial instruments or interests or any other transaction.

This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Group and certain plans and objectives with respect thereto. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as “anticipate”, “target”, “expect”, “estimate”, “intend”, “plan”, “goal”, “believe”, “hope”, “aims”, “continue”, “will”, “may”, “should”, “would”, “could”, or other words of similar meaning. These statements are based on assumptions and assessments made by the Group in light of their experience and their perception of historical trends, current conditions, future developments and other factors the Group believes appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this document could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this document. The Group does not assume any obligation to update or correct the information contained in this document (whether as a result of new information, future events or otherwise), except as required by applicable law.

There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions.

Nothing in this announcement is intended as a profit forecast or estimate for any period and no statement in this announcement should be interpreted to mean that earnings, profit or earnings or profit per share or dividend per share for the Group for the current or future financial years would necessarily match or exceed the historical published earnings, profit or earnings or profit per share or dividend per share for the Group.

PJT Partners LP, AlixPartners LLP, Kirkland & Ellis LLP and Slaughter and May (the “Advisers”) are providing advice to Cineworld (and other members of the Group) and no one else in connection with the matters referred to in this announcement. The Advisers will not regard any other person as their client in connection with such matters, nor will they be responsible to any other person for providing the protections afforded to their clients or for providing advice in relation to such matters. The Advisers are providing advice to Cineworld (and other members of the Group) and no one else in connection with the matters referred to in this announcement. The Advisers will not regard any other person as their client in connection with such matters, nor will they be responsible to any other person for providing the protections afforded to their clients or for providing advice in relation to such matters.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220909005176/en/

Cineworld Group plc:

Israel Greidinger

Nisan Cohen

Manuela Van Dessel

+44 (0)20 8987 5000

investors@cineworld.co.uk

FGS Global (UK):

James Leviton / James Thompson / Ed Treadwell

+44 (0)20 7251 3801

CineworldMedia@fgsglobal.com

FGS Global (US):

Kal Goldberg / Lizzie Hyland / Monique Sidhom

+1 (646) 970-4727

CineworldMedia@fgsglobal.com

Source: Cineworld Group plc

FAQ

What is Cineworld's recent financing approval?

Cineworld has approved $785 million from a $1.94 billion DIP financing facility to support ongoing operations during its Chapter 11 proceedings.

When did Cineworld file for Chapter 11 bankruptcy?

Cineworld filed for Chapter 11 bankruptcy on September 7, 2022.

Will Cineworld continue to operate during bankruptcy?

Yes, Cineworld's cinemas will continue to operate without interruption during the bankruptcy process.

How will Cineworld's DIP financing affect vendors and employees?

Cineworld intends to pay vendors and suppliers in full while employees will continue to receive their usual wages and benefits.

What is the significance of the DIP financing for Cineworld?

The DIP financing is crucial for Cineworld to maintain liquidity and fulfill its operational obligations during the restructuring.