Cineworld, the world’s second largest movie theater circuit and the parent company of Regal, has received “first day” relief approval from the United States Bankruptcy Court for the Southern District of Texas for “first day” relief related to its Chapter 11 bankruptcy filing earlier this week.
The decision grants Cineworld immediate access to up to approximately $785 million of an approximate $1.94 billion debtor-in-possession financing facility that, together with the company’s available cash reserves and cash provided by ongoing operations, is expected to provide sufficient liquidity for Cineworld to meet its financial obligations during the Chapter 11 process. This includes payments to vendors and suppliers, as well covering employee wages, salaries, and benefits programs.
A press release from Cineworld states the company intends to pay its vendors and suppliers in full and on normal terms for goods and services received during this period. Employees will also continue to receive their usual wages and benefits without interruption.
Cineworld and its global cinema brands, including Regal, the second-largest circuit in the United States, will remain open and continue to welcome moviegoers as usual. All existing customer membership programs, including Regal’s Unlimited subscirption service and Regal Crown Club loyalty program in the United States and Cineworld’s Unlimited subscirption scheme in the United Kingdom, will continue to operate without interruption.
“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.”
Cineworld operates 747 cinemas across 10 countries, totaling 9,139 screens globally.
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