Cineworld looks to raise $2.26 bln to emerge from bankruptcy - filing
03/04/2023 01:08
April 2 (Reuters) - Cineworld Group Plc CINE.L is
planning to raise $2.26 billion, according to a court filing on
Sunday, as the theater chain aims to emerge from Chapter 11
bankruptcy in the first half of 2023.
The fundraising will consist of a first lien senior secured
debt credit facility of $1.46 billion and issuance of new common
stock for an aggregate purchase price of $800 million, according
the filing with the U.S. bankruptcy court in the Southern
District of Texas.
Cineworld filed for U.S. bankruptcy protection in September
to try to restructure its debt after being hit by the pandemic
and a lack of blockbuster movies. It has been struggling to find
buyers.
The proceeds of the capital raising will be used to meet
costs and expenses relating to the restructuring, and also to
pay fees, other expenses and provide working capital to
reorganized debtors, according to the filing.
(Reporting by Maria Ponnezhath in Bengaluru; Editing by Kenneth
Maxwell)
((Maria.Ponnezhath@thomsonreuters.com; +91 8061822749;))