Regal parent Cineworld has decided to terminate the marketing process for its businesses outside of the U.S., UK and Ireland. Although it received offers from “a number of prospective counterparties,” the proposals “did not meet the value level required by the group’s lenders,” the exhibition giant said today. The so-called “rest of world” businesses include cinemas in Israel, Poland, Czech Republic, Slovakia, Hungary, Bulgaria and Romania.
Cineworld, which is aiming to emerge from bankruptcy in the first half of the year, similarly recently determined that it would cease seeking a buyer for its businesses in the U.S., UK and Ireland absent an all-cash bid significantly in excess of the value established under its proposed restructuring. Eliminating the possible sale transactions could help ensure that Cineworld meets its goal of emerging from Chapter 11 on an “expeditious timeline.”
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The group filed for bankruptcy last fall in the U.S. Bankruptcy Court for the Southern District of Texas. Earlier this month, it said it had reached a conditional agreement with lenders to emerge from Chapter 11. Then, last week it submitted a reorganization plan to the Texas court. Judge Marvin Isgur has said he was sticking with an April 20 date to go over the plan and set May 26 as a confirmation date.
Cineworld today said it continues to move forward with the proposed restructuring in the Chapter 11 cases. Certain creditor approvals, among other requirements, will need to be obtained in order for the bankruptcy court to confirm the plan. A shareholder meeting will be held in London on April 20 as required by UK securities law.
In the meantime, and as box office is getting a great bump from The Super Mario Bros Movie, Cineworld continues to operate its global business and cinemas as usual without interruption while honoring the terms of all existing customer membership programs, including Regal Unlimited and Regal Crown Club in the U.S. and Cineworld Unlimited in the UK.
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