REG - Cineworld Group plc - Chapter 11 update

CineworldAnnouncement

25/05/2023 07:00

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RNS Number : 5455A  Cineworld Group plc  25 May 2023

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CINEWORLD GROUP PLC

("Cineworld" or the "Company")

Chapter 11 update

Cineworld (together with its subsidiaries, the "Group") is today providing an
update on its Chapter 11 cases. Further to its announcement on 3 April 2023,
Cineworld is pleased to announce that additional lenders under the Group's
term loans due 2025 and 2026 and revolving credit facility due 2023 (together,
the "Legacy Facilities") acceded to amended and restated versions of the
restructuring support agreement (the "RSA") and the backstop commitment
agreement (the "BCA"), each of which was originally filed with the United
States Bankruptcy Court for the Southern District of Texas, Houston Division
(the "Bankruptcy Court") on 2 April 2023.

As a result of this, the proposed restructuring of the Group (the "Proposed
Restructuring") now has the support of lenders holding and controlling
approximately 99% of the Legacy Facilities and at least 69% of the outstanding
indebtedness under the debtor-in-possession facility of Cineworld and certain
of its subsidiaries (the "Group Chapter 11 Companies").

In addition, following a hearing on 2 May 2023, the Bankruptcy Court approved
the terms of the BCA and authorised the relevant Group Chapter 11 Companies to
implement those terms, including raising the exit facility contemplated by the
BCA and the payment of relevant fees and expenses in connection therewith.
 This order marked another positive step taken by the Group Chapter 11
Companies towards implementation of the Proposed Restructuring.

As previously announced, in light of the level of existing debt that is
proposed to be released under the Group Chapter 11 Companies' plan of
reorganisation, the Proposed Restructuring does not provide for any recovery
for holders of Cineworld's existing equity interests.

Timing of emergence

The Group Chapter 11 Companies now expect to emerge from the Chapter 11 cases
in July 2023.  The Group Chapter 11 Companies remain committed to emerging
from the Chapter 11 cases as expeditiously as possible.

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 UK.

Additional information

Information regarding the Group Chapter 11 Companies' Chapter 11 cases is
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 of reorganisation 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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