Cineworld Group has entered into “restructuring support” and “backstop commitment” agreements with its lenders that could help the Regal Cinemas owner emerge from Chapter 11 bankruptcy.
The lenders hold and control approximately 83% of the group’s term loans due in 2025 and 2026 and a revolving credit facility due in 2023.
If implemented, the proposed restructuring would reduce the Group Chapter 11 Companies’ funded indebtedness by approximately $4.53 billion, primarily through lenders receiving equity in the reorganized group in exchange for the release of their claims. It would also raise $800 million in aggregate gross proceeds through a fully backstopped equity offering to the legacy lenders and a direct equity offering to certain legacy lenders.