Cineworld plans July bankruptcy exit
Cineworld expects to emerge from Chapter 11 bankruptcy in July, the U.K.-based movie theater company said Thursday morning.
Why it matters: It's another welcome sign for the movie theater industry as it continues its rebound from COVID-era closures.
Details: Cineworld's restructuring proposal has the support of lenders holding 99% of its revolving credit facilities and 69% of its outstanding debts.
The big picture: A few months ago, it appeared as if the world's second-largest movie theater operator would be broken up. Instead, Cineworld gets a fresh start midway through summer movie season.
- The box office is having its best year since 2019, with more than $3.1 billion in domestic ticket sales — an increase of 22% from last year.
- Though the company had to close some of its theaters, Cineworld will emerge from bankruptcy without any major sell-offs after it failed to find a deal that it liked.
Of note: In March, it had still been considering a sale of its Eastern Europe and Israel theaters — Elliott Management and CVC Capital Partners were two potential buyers — but called that off in April.
What's next: Cineworld is scheduled to formally seek final court approval of its bankruptcy restructuring on June 28.