REG - Cineworld Group plc - Update on Chapter 11 cases and marketing process

CineworldAnnouncement

03/01/2023 07:00

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RNS Number : 4076L  Cineworld Group plc  03 January 2023

03 January 2023

 

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CINEWORLD GROUP PLC

("Cineworld")

 

Update on Chapter 11 cases and marketing process

 

Following its announcement on 7 September 2022 of commencement by Cineworld
and certain of its subsidiaries (the "Group") of chapter 11 cases in the
United States, Cineworld has been in discussions with its key stakeholders to
develop a proposed chapter 11 plan of reorganisation (a "Plan") that seeks to
maximise value for the benefit of moviegoers and all other stakeholders. Those
discussions remain ongoing.

 

In light of recent media reports, Cineworld would like to clarify that neither
it nor its advisers have participated in discussions with AMC Entertainment
Holdings, Inc. ("AMC") regarding the sale of any of its cinema assets.
Cineworld also understands that neither the ad hoc group of lenders under the
Group's 2018 credit facility nor its advisers were party to discussions with
AMC.

 

In parallel with developing a Plan to restructure the Group's capital
structure, the company will also run a marketing process in pursuit of a value
maximizing transaction for the Group's assets, focused on proposals for the
Group as a whole. It is expected that outreach to potential transaction
counterparties will commence in January 2023 as Plan negotiations continue.
Any actionable, value-maximising sale transaction emerging from buyer outreach
is expected to run in parallel with the pursuit of confirmation of the
proposed Plan.

 

Cineworld has not initiated and does not intend to initiate a separate
marketing process for the sale of any of its assets on an individual basis.
Furthermore, any sale transaction for the Group as a whole would not include
the sale of Cineworld itself and would therefore not be subject to the rules
of the Takeover Code.

 

As previously announced, it is expected that any restructuring or sale
transaction agreed with stakeholders will result in a very significant
dilution of existing equity interests in Cineworld and there is no guarantee
of any recovery for holders of Cineworld's existing equity interests.

 

Further updates will be provided in due course, as required.

 

For further information, please contact:

 

Cineworld Group plc

Israel Greidinger

Nisan Cohen

Manuela Van Dessel

investors@cineworld.co.uk

+44 (0) 20 8987 5000

 

FGS Global (UK)

James Leviton / James Thompson / Ed Treadwell

Cineworld-LON@fgsglobal.com

+44 (0) 20 7251 3801

 

FGS Global (US)

Kal Goldberg / Lizzie Hyland / Michael Mittelman

+1 (646) 970-4727

CineworldMedia@fgsglobal.com

 

PJT Partners LP (Financial Adviser):

Simon Lyons / Joe Lenehan / Kush Nanjee / Henry Lebus

+44 (0)20 3650 1100

 

 

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 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. 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 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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