Cineworld Group PLC (LSE:CINE), the cinema operator, suspended its shares on the London stock exchange after its plans to exit Chapter 11 bankruptcy were approved by a US court on Friday.
Approximately US$4.5bn of the company’s debt will be swapped for shares and senior lenders will now become a sole owner through a newly incorporated company, called NewCo/New Cineworld.
New debt financing worth around US$1.7bn has been obtained and equity capital in the range of US$800mln has been raised, a company statement said.
Current Cineworld shareholders will get nothing.
Cinemas across the country saw a surge in sales following the release of Oppenheimer and Barbie Source: The Hollywood Reporter
New Cineworld has appointed Eduardo Acuna, an entertainment industry veteran with experience at Cinepolis, as chief executive officer and Eric Foss, former boss at Pepsi Beverages Company and Aramark, as chairman.
Joined by five new board members including Ana Sarnoff, former chairwoman and CEO of Warner Bros Discovery Inc (NASDAQ:WBD), the future of the original Cineworld management team has not been made clear.
“I am truly excited to introduce the impressive group of directors who will be joining our new Board and whose expertise and leadership in various fields will help us to grow Cineworld’s business and ensure that our theatres continue to be moviegoers’ first choice for memorable cinema experiences,” Foss said.
Operations will not be affected by the changes and all brands including Regal, Cinema City, Picturehouse and Planet will continue to welcome customers as usual – with membership programmes still being honoured.