REG - Cineworld Group plc - Chapter 11 Update

CineworldAnnouncement

11/04/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230411:nRSK7818Va&default-theme=true

RNS Number : 7818V  Cineworld Group plc  11 April 2023

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION (DIRECTLY OR INDIRECTLY) IN WHOLE
OR IN PART IN, INTO OR FROM THE UNITED STATES OF AMERICA OR ANY JURISDICTION
WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT
JURISDICTION

CINEWORLD GROUP PLC

("Cineworld" or the "Company")

Chapter 11 update

Further to its announcement on 3 April 2023, Cineworld (together with its
subsidiaries, the "Group") and certain of its subsidiaries (together, the
"Group Chapter 11 Companies") have today filed a plan of reorganisation (the
"Plan") and an accompanying disclosure statement (the "Disclosure Statement")
with the United States Bankruptcy Court for the Southern District of Texas,
Houston Division (the "Bankruptcy Court").

The Plan is supported by lenders holding and controlling approximately 83% of
the Group's term loans due 2025 and 2026 and revolving credit facility due
2023 and approximately 69% of the Debtors' outstanding indebtedness under the
debtor-in-possession financing facility pursuant to the restructuring support
agreement entered into between the Group Chapter 11 Companies and such lenders
on 2 April 2023 (the "RSA").

The Plan, which remains subject to approval from the Bankruptcy Court,
contemplates, among other things, a proposed restructuring of the Group
Chapter 11 Companies, as further detailed in the RSA and the announcement made
by the Company on 3 April 2023 (the "Proposed Restructuring").

Consistent with the Company's announcement on 3 April 2023, in light of the
level of existing debt that is proposed to be released under the Plan, the
Proposed Restructuring does not provide for any recovery for holders of
Cineworld's existing equity interests.

Timing of emergence

As announced on 24 February 2023, Cineworld expects to emerge from the Chapter
11 cases during the first half of 2023. The Group remains committed to
emerging from the Chapter 11 cases as expeditiously as possible although,
among other things, any sale transaction resulting from the Marketing Process
may delay emergence beyond the first half of 2023.

The Group Chapter 11 Companies are seeking to confirm the Plan on an
expeditious timeline.  Certain creditor approvals, among other requirements,
will need to be obtained in order for the Bankruptcy Court to confirm the
Plan, as set out in further detail in the Plan and the Disclosure Statement.
 

Business as usual

During the restructuring process, Cineworld continues to operate its global
business and cinemas as usual without interruption. Cineworld and its brands
around the world - including Regal, Cinema City, Picture House and Planet -
are continuing to welcome customers to cinemas as usual. The Group continues
to honour the terms of all existing customer membership programmes, including
Regal Unlimited and Regal Crown Club in the United States and Cineworld
Unlimited in the UK.

Additional information

Copies of the Plan, the Disclosure Statement and related documents, as well as
other information regarding the Chapter 11 cases, are available at the
following website: https://cases.ra.kroll.com/cineworld
(https://cases.ra.kroll.com/cineworld) .

Contacts:

Cineworld Group plc:
Israel Greidinger

Nisan Cohen

Manuela Van Dessel

investors@cineworld.co.uk
+44 (0)20 8987 5000

FGS Global (UK) (Corporate PR Adviser):
James Leviton / James Thompson

Cineworld-LON@fgsglobal.com

+44 (0)20 7251 3801

FGS Global (US) (Corporate PR Adviser):
Kal Goldberg / Lizzie Hyland / Monique Sidhom

CineworldMedia@fgsglobal.com

+1 (646) 970-4727

PJT Partners LP (Financial Adviser):
Simon Lyons / Kush Nanjee

+44 (0)20 3650 1100

Steven Zelin / Michael Schlappig

+1 212 364 7800

About Cineworld

Cineworld was founded in 1995 and is now one of the leading cinema groups in
Europe. Originally a private company, it re-registered as a public company in
May 2006 and listed on the London Stock Exchange plc in May 2007. Cineworld's
acquisition of Regal Entertainment Group has created the second largest cinema
business in the world (by number of screens). Cineworld currently operates in
the United Kingdom, Ireland, Poland, the Czech Republic, Slovakia, Hungary,
Bulgaria, Romania, Israel and the United States.

Forward looking statements

This announcement is not intended to and does not constitute and should not be
construed as, considered a part of, or relied on in connection with any
information or offering memorandum, security purchase agreement, or offer,
invitation or recommendation to underwrite, buy, subscribe for, otherwise
acquire, or sell any securities or other financial instruments or interests or
any other transaction.

This announcement contains certain forward-looking statements with respect to
the financial condition, results of operations and business of the Group and
certain plans and objectives with respect thereto, including with respect to
the Group's ordinary shares. These forward-looking statements can be
identified by the fact that they do not relate only to historical or current
facts. Forward-looking statements often use words such as "anticipate",
"target", "expect", "estimate", "intend", "plan", "goal", "believe", "hope",
"aims", "continue", "will", "may", "should", "would", "could", or other words
of similar meaning. These statements are based on assumptions and assessments
made by the Group in light of their experience and their perception of
historical trends, current conditions, future developments and other factors
the Group believes appropriate. By their nature, forward-looking statements
involve risk and uncertainty, because they relate to events and depend on
circumstances that will occur in the future and the factors described in the
context of such forward-looking statements in this document could cause actual
results and developments to differ materially from those expressed in or
implied by such forward-looking statements. Although it is believed that the
expectations reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have been correct
and you are therefore cautioned not to place undue reliance on these
forward-looking statements which speak only as at the date of this document.
The Group does not assume any obligation to update or correct the information
contained in this document (whether as a result of new information, future
events or otherwise), except as required by applicable law.

There are several factors which could cause actual results to differ
materially from those expressed or implied in forward-looking statements.
Among the factors that could cause actual results to differ materially from
those described in the forward-looking statements are changes in the global,
political, economic, business, competitive, market and regulatory forces,
future exchange and interest rates, changes in tax rates and future business
combinations or dispositions (including any potential sale by the Group) and
the risks, uncertainties and costs related to the Chapter 11 cases, including,
among others, the timing of any emergence from the Chapter 11 cases and the
risk that any Plan may not be confirmed or implemented at all.

Nothing in this announcement is intended as a profit forecast or estimate for
any period and no statement in this announcement should be interpreted to mean
that earnings, profit or earnings or profit per share or dividend per share
for the Group for the current or future financial years would necessarily
match or exceed the historical published earnings, profit or earnings or
profit per share or dividend per share for the Group.

PJT Partners LP, Alix Partners LLP, Kirkland & Ellis LLP and Slaughter and
May (collectively, the "Advisers") are providing advice to Cineworld (and
other members of the Group) and no one else in connection with the matters
referred to in this announcement. The Advisers will not regard any other
person as their client in connection with such matters, nor will they be
responsible to any other person for providing the protections afforded to
their clients or for providing advice in relation to such matters.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDGUGDSRXBDGXB