Sep 7, 2022 - Economy & Business
Regal owner Cineworld files for Chapter 11 bankruptcy protection
The parent company of movie theater chain Regal Cinemas filed for Chapter 11 bankruptcy protection Wednesday.
Why it matters: The movie theater business has been reeling from the pandemic, which cratered attendance, and competing with streaming services for people's time.
Driving the news: Cineworld — which recently warned it was considering bankruptcy — said Wednesday that it had filed the Chapter 11 case in the U.S. Bankruptcy Court for the Southern District of Texas.
- The company is aiming to shed debt and emerge as a more sustainable entity.
- It secured $1.94 billion in bankruptcy loans — known as debtor-in-possession financing — to support its restructuring plan.
What's next: Cineworld said it's hoping to emerge from bankruptcy in the first quarter of 2023 after completing "a real estate optimisation strategy" in a bid to fetch more favorable lease terms.
- "The pandemic was an incredibly difficult time for our business, with the enforced closure of cinemas and huge disruption to film schedules that has led us to this point," Cineworld CEO Mooky Greidinger said in a statement.
- "This latest process is part of our ongoing efforts to strengthen our financial position and is in pursuit of a de-leveraging that will create a more resilient capital structure and effective business."