Cineworld Reaches Plan With Creditors To Cut Debt, Exit Bankruptcy
If all goes according to plan, movie theater chain Cineworld will shed billions of dollars in debt this week and emerge from bankruptcy.
The second-largest theater chain in the world and its creditors have come to an agreement on erasing some of its more than $5B in debt from the books, Bloomberg reported Wednesday.
“We are down to literally dotting i’s and crossing t’s,” an attorney for Cineworld's creditors told Bloomberg without elaborating on the plan.
It might not be long before details of the plan are clear. A restructuring support agreement is expected to be filed in a Texas bankruptcy court this week, according to Bloomberg.
With that agreement set, Cineworld is also expected to submit a bankruptcy exit plan Wednesday, the lawyer told Bloomberg.
Cineworld's attempts to sell off parts of its business last year found mixed success. Investors were only interested in buying its European and Israeli assets, not its UK or U.S. properties. Cineworld is the parent company of Regal Cinemas, which had just over 500 locations nationwide when Cineworld filed for bankruptcy.
