REG - Cineworld Group plc - Chapter 11 Update

CineworldAnnouncement

18/04/2023 07:00

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RNS Number : 5629W  Cineworld Group plc  18 April 2023

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CINEWORLD GROUP PLC
("Cineworld" or the "Company")

Chapter 11 Update

Cineworld Terminates Marketing Process for 'Rest of World' Business

Cineworld (together with its subsidiaries, the "Group") today announces that,
in agreement with its key stakeholders, the Group has decided to terminate the
marketing process for its 'Rest of World' business (outside of the United
States, the United Kingdom and Ireland) (the "RoW Business"). The Group
received proposals for the RoW Business from a number of prospective
counterparties, however the proposals did not meet the value level required by
the Group's lenders.

 

Cineworld and certain of its subsidiaries' (together, the "Group Chapter 11
Companies") continue to move forward with the proposed restructuring in the
Chapter 11 cases, pursuant to the restructuring support agreement and the
backstop commitment agreement entered into between the Group Chapter 11
Companies and the 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 outstanding indebtedness under the
debtor-in-possession financing facility, as announced on 3 April 2023, (the
"Proposed Restructuring") to be implemented primarily through a plan of
reorganisation in the Chapter 11 cases (the "Plan"), as announced on 11 April
2023.

 

As previously announced, 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

 

Cineworld continues to expect to emerge from the Chapter 11 cases during 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 United States
Bankruptcy Court for the Southern District of Texas, Houston Division to
confirm the Plan.

 

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, Picturehouse 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 United Kingdom.

 

Additional information

 

Copies of the Plan, the accompanying 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.

 

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, including with respect to the Rights Offering.

 

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 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.

 

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