Cineworld Lands $250 Million Credit Facility And Suspends Trading On London Stock Exchange Amid Restructure

Zac Ntim
·1 min read

Cineworld said on Friday that it will suspend its listing on the London Stock Exchange as part of plans to restructure its business and accounts to reduce heavy debt.

The company revealed last month that it would file for administration in the UK. The world’s second-biggest cinema chain, which owns Regal in the U.S., filed for bankruptcy protection in the U.S. in September.

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As part of today’s statement, Cineworld bosses also said the company had secured a new $250m credit facility to help finance its restructuring. The proposed restructuring plans are expected to provide the company with significant additional liquidity to fund its long-term strategy. In particular, it will involve the release of approximately $4.53 billion of the group’s funded indebtedness, the execution of a rights offering to raise gross proceeds of $800 million, and the provision of $1.46 billion in new debt financing.

“The Restructuring, when implemented by way of an administration process, will transform the Group’s balance sheet and provide it with significant additional liquidity to fund its long-term strategy,” today’s statement read.

Despite the complex financial restructuring, the group said it continues to operate its global business and cinemas as usual without interruption.

“This will not be affected by the Group Chapter 11 Companies’ emergence from their Chapter 11 cases, including the entry of Cineworld Group plc into administration or the suspension and cancellation of the Listing and the Admission to Trading,” the statement read.

Earlier this month, Cineworld lenders agreed to appoint Cinépolis executive Eduardo Acuna as the group’s new CEO.

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