Cineworld was back in United States Bankruptcy Court providing an update on the status of their ongoing bankruptcy case. Lawyers for the United Kingdom-based company gave an overview of current operations, a potential reorganization plan, ongoing interest from third-party bidders and even set a court date to provide a firm schedule for exiting bankruptcy.
The exhibitor’s secured lenders have submitted a term sheet detailing a debt-for-equity transaction that would also grant rights to fund the business moving forward. The ad hoc group is made up of 35 equity funds which hold USD $6 billion in Cineworld debt. Meanwhile, Cineworld has received significant interest in a sale and is currently accepting bids for the purchase of the company through 16 February. During this calendar year the world’s second largest movie theatre chain has beat it’s own budget forecast and managed to save up USD $182 million in liquidity thanks to blockbusters such as “Avatar: The Way of Water.”