Cineworld Emerges From Chapter 11 Bankruptcy, Ann Sarnoff Joins Board

Georg Szalai
·4 min read
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Cinema giant and Regal Entertainment owner Cineworld has successfully completed its financial restructuring process and emerged from its Chapter 11 bankruptcy cases in the U.S. The exhibition company unveiled the news late on Monday along with new board members, including former Warner Bros. top executive Ann Sarnoff.

Shareholders have been wiped out as part of the financial restructuring, with a new, incorporated company controlled by lenders now controlling Cineworld. The movie theater chain and its various parts reduced their indebtedness by approximately $4.53 billion, raised approximately $800 million in new equity capital, and secured new debt financing worth approximately $1.71 billion. “With this strengthened and recapitalized balance sheet, the group is well-positioned to pursue future strategic initiatives and continue providing leading cinematic experiences for customers globally, including through investments in new screen formats and enhancements to its flagship theaters,” the company said.

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Earlier in the day, Cineworld had named an administrator in the U.K. and had its shares delisted from the London Stock Exchange.

Cineworld’s board, led by chair Eric Foss who previously served as chair and CEO of Pepsi Bottling Group and Aramark, has also been filled.

“With a transformed balance sheet and a right-sized capital structure, Cineworld is ready and fully able to succeed in this dynamic and constantly changing movie theatre industry,” said Foss. “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.”

Eduardo Acuna, Cineworld’s new CEO, joins Foss on the board, along with other experienced business leaders. Acuna previously served as president of Cinépolis Americas and Cinépolis Do Brazil.

“I am honored to join Cineworld and work alongside the experienced management team to unlock the company’s great potential,” said Acuna. “With its talented group of employees, significant number of distinguished business partners and devoted customers around the world, Cineworld has what it needs to reach new levels of success. We will continue to put our guests at the center of everything we do and look forward to continuing to break new ground in our industry.”

The company said Foss and Acuna are joined by additional board members “who will leverage their collective expertise in finance, entertainment and corporate governance to work closely with the leadership team and drive new Cineworld’s strategy.”

Here is a look at the other new board members.

Ann Sarnoff, former chair and CEO of Warner Bros., who previously also held senior executive positions at BBC Studios and Viacom.
“Sarnoff’s entertainment experience and industry relationships will prove invaluable for new Cineworld as the group deepens its relationships with studios and content suppliers,” the company said. “Sarnoff also brings a honed sense of how to engage and delight global audiences.”

Patrick J. Bartels, managing member of fiduciary services firm Redan Advisors.
He brings “deep strategic planning expertise along with his more than 20 years of capital markets, M&A and investing experience across a broad universe of industries to help shepherd the group into its new era post-emergence,” Cineworld said. “Having guided U.S. and international public and private companies, Bartels will also help new Cineworld maximize its businesses around the world.”

Stephen (Steve) Joyce, the former CEO of Dine Brands Global, the franchisor of IHOP and Applebee’s Grill + Bar, as well as a former executive at Marriott International. “Joyce’s background in brand equity and hospitality as well as his deep knowledge of how to engage customers will help the group enhance its relationship with moviegoers,” the firm said. “In addition, Joyce’s real estate experience will assist new Cineworld in optimizing its footprint and theater location strategy.”

Stefano Malfitano, a principal at Cyrus Capital Partners. The company said his “experience managing investments in a variety of industries and geographies will provide new Cineworld with leadership in driving growth and positive financial results.”

Blythe J. McGarvie, the former CEO of leadership seminars provider LIF Group and former CFO of supermarket chain Hannaford Bros. “McGarvie’s consumer brand experience, as well as her prior term on the board of Pepsi Bottling Group Inc., will provide additional leadership depth to oversee the group’s partnerships across its theaters,” Cineworld said.

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