A US bankruptcy court has granted cinema giant Cineworld Group access to up to $785 million in financing, with the company saying it is “expected to provide sufficient liquidity” for it to meet its ongoing obligations.”
Cineworld, which operates Regal movie theaters in the United States, and several of its subsidiaries filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas earlier this week and has now received approval from the United States Bankruptcy Court for the Southern District of Texas for its “first day” relief regarding its Chapter 11 proceedings.
As part of that matter, the court “granted the group immediate access to approximately $785 million of a $1.94 billion debtor financing facility (DIP), along with the group’s available cash reserves, and the cash provided by operations, are expected to provide sufficient liquidity for Cineworld to meet its ongoing obligations, including post-litigation obligations. for vendors and suppliers, as well as employee pay, compensation and benefits programs,” the company said. “The remainder of the DIP facility will be made available upon final court approval.”
Cineworld added that the Chapter 11 group of companies “intend to pay suppliers and suppliers in full and on customary terms the eligible amount for the goods and services received in the course of business.” Chapter 11. Employees will also continue to receive their normal wages and benefits without interruption.”
The second largest exhibitor in the world operates 747 venues and 9,139 screens in 10 countries.
Approval of the requested “first day” relief “is a positive step forward for the team and our restructuring efforts,” said Cineworld CEO Moshe “Mooky” Greidinger. “As we position Cineworld for long-term growth, through this Chapter 11 process and beyond, we remain steadfast in our commitment to providing our customers with the most memorable movie experiences and maintaining long term relationship with our business partners.”