Cineworld Group has reached a bankruptcy settlement with its landlords and lenders, which will allow the embattled UK-based exhibitor borrow an additional $150m and make a $1bn debt repayment, according to Reuters.
Cineworld filed Chapter 11 bankruptcy protection in Texas in the US in September with less than $4m cash on hand.
Reuters reported landlords and junior creditors dropped their opposition to the billion-dollar debt repayment after Cineworld agreed to pay at least $20m in rent that will accrue after September 30.
Cineworld previously did not intend to make any post-September rent payments until the end of its bankruptcy.
According to Reuters, Cineworld has also agreed to explore a potential sale of the business and allow creditor input on its business plan.
Cineworld, the world’s second-largest cinema operator, is based in 10 counties with 747 sites and 9,139 screens, and owns US giant Regal as well as boutique UK chain Picturehouse.
Cineworld’s debt was at $4.84bn in March and the company is facing a massive fine in its ongoing dispute with Canada’s Cineplex, following the abandoned takeover of the company by Cineworld in mid-2020.
Cineworld’s share price tumbled after news first broke in August that it was considering filing for bankruptcy. Cineworld’s shares were up over 50% this morning on news of the settlement.
Screen has contacted Cineworld for comment.
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