Regal Owner Cineworld to File for Administration in the U.K. Without Affecting Business
The Cineworld Group will file for administration in the U.K., but the business will continue without interruption.
Cineworld Group and its subsidiaries had commenced Chapter 11 cases in the United States Bankruptcy Court in September 2022. The group now expects to emerge from the Chapter 11 cases in July and will continue to operate its cinemas as usual without interruption, it said in May.
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On Monday, the group said it would will apply to a court in England for an administration order. The application would only apply to Cineworld Group plc itself as the listed parent company of the group and not to any of the operating companies or subsidiaries in the rest of the group, which would continue to operate as usual without interruption. Any administration order would not affect the status or rights of any of the group’s employees.
Once administrators have been appointed, they will take steps through which substantially all of Cineworld Group plc’s assets will be transferred to its wholly owned subsidiary, Crown U.K. Holdco Limited and a newly incorporated company to be controlled by the group’s lenders will become the sole owner of Crown, with Cineworld Group plc ceasing to have any interest in Crown or the rest of the group, the company said. “As such, although the Plan is intended to allow the business of the Group to emerge from the Chapter 11 cases as a continued going concern, it will not achieve a rescue of Cineworld Group plc itself,” the group added.
The top management of Cineworld are to receive up to $35 million to exit the company as it emerges from Chapter 11 proceedings, it emerged earlier this month.
“Cineworld continues to operate its global business and cinemas as usual without interruption and this will not be affected by the entry of Cineworld Group plc into administration,” the company stated. “The Group 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 U.K.”
Cineworld owns the Regal cinema chain and is the second largest movie theater operator in the world. Its shares are listed in the U.K.
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