Last week, when Cineworld announced it had reached an agreement with its existing lenders to emerge from Chapter 11 bankruptcy by the middle of this year few of the media outlets covering the news provided any explanation of what this really meant for the company, its senior management and the overall future of the world’s second largest cinema chain. We attempt to rectify that with our own deep dive into Cineworld’s restructuring in a post intended to review some of the agreement’s pertinent points with a bit more detail.

The restructuring support agreement that Cineworld entered into with its existing lenders will discharge USD $4.53 billion in debt through those same lenders turning their debt into equity in a newly restructured company. At the same time they plan on funding the company’s future operations through a rights offerings in the new Cineworld. They are essentially taking over Cineworld and will install their own board and senior management.

Cineworld is no longer looking for a buyer, at least for the entire company, and instead will seek bids for its operations in Eastern Europe and Israel.