National CineMedia Chapter 11 Restructuring Plan Confirmed by Court

Etan Vlessing
·2 min read

Movie theater advertising giant National CineMedia has been cleared by a Texas court to emerge from Chapter 11 bankruptcy protection as part of a debt restructuring deal earlier agreed with key lenders.

National CineMedia, which has around a $1.1 billion debt load with bondholders, said the United States Bankruptcy Court for the Southern District of Texas confirmed its voluntary reorganization plan to emerge from Chapter 11 in August or September 2023.

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The news follows Regal Entertainment Group owner Cineworld, the world’s second-largest exhibitor, announcing it will file for administration in the U.K. and delist its shares from the London Stock Exchange. That comes as part of its own debt-for-equity transaction that will see the cinema chain emerge from U.S. bankruptcy protection in July as assets in the cinema chain would be transferred to a new incorporated company controlled by lenders.

The Chapter 11 filing followed Cineworld failing to find buyers for some or all of its exhibition assets. National CineMedia’s business, like Cineworld, was hit by the shutdown of cinemas due to the COVID-19 pandemic, followed by the slow industry recovery since the reopening of theaters and advertising being affected by macro-economic clouds.

Under its confirmed plan, National CineMedia will maintain its existing corporate structure and management team to lead the reorganized company, backed by a $55 million exit financing facility to fund operations and growth.

“Today’s announcement marks a major step forward in our financial restructuring, positioning the company for long-term success,” Tom Lesinski, National CineMedia CEO, said in a statement.

Exhibitor AMC Theatres recently acquired shares in the cinema advertising firm as a regulatory filing indicated its stake amounted to 9.1 percent.

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