Strengthened Balance Sheet Enables Pursuit of Future Strategic Initiatives, New Board of Directors, Consisting of Experts in Finance, Entertainment and Corporate Governance, Appointed to Oversee Emerged Company
The reorganised Cineworld group, including its newly incorporated parent company (“New Cineworld” and, together with its subsidiaries, the “Group”), today announces that Cineworld Group plc and certain subsidiaries within the Group (together, the “Chapter 11 Companies”) have successfully completed their financial restructuring process and have emerged from their Chapter 11 cases.
Stronger Financial Foundation
Through this process, the Chapter 11 Companies have successfully reduced their funded indebtedness by approximately $4.53 billion, raised approximately $800 million in new equity capital, and secured new debt financing in the aggregate amount of approximately $1.71 billion, including a new revolving credit facility of $250 million. With this strengthened and recapitalized balance sheet, the Group is well-positioned to pursue future strategic initiatives and continue providing leading cinematic experiences for customers globally, including through investments in new screen formats and enhancements to its flagship theatres.
High-Quality Board of Directors
A new slate of directors has been appointed to the board of New Cineworld (the “Board”) to oversee the Group and its strategic direction. As previously announced, the Board is led by Chairperson Eric Foss who previously served as Chairman and CEO of Pepsi Bottling Group and Aramark. Foss’s experience running global, at-scale, consumer and service-centric businesses, and his proven track record of growth, building high-performance teams and creating sustainable shareholder value is well suited to guide the Group through a competitive international cinema marketplace.
“With a transformed balance sheet and a right-sized capital structure, Cineworld is ready and fully able to succeed in this dynamic and constantly changing movie theatre industry,” said Foss. “I am truly excited to introduce the impressive group of directors who will be joining our new Board and whose expertise and leadership in various fields will help us to grow Cineworld’s business and ensure that our theatres continue to be moviegoers’ first choice for memorable cinema experiences.”
Eduardo Acuna, New Cineworld’s Chief Executive Officer, joins Foss on the Board. Acuna is an entertainment industry veteran whose prior roles as President of Cinépolis Americas and Cinépolis Do Brazil will be an asset for the Group with its network of theatres around the world. Acuna has been lauded by the movie theatre industry for his work in designing and executing successful business strategies.
“I am honored to join Cineworld and work alongside the experienced management team to unlock the company’s great potential,” said Acuna. “With its talented group of employees, significant number of distinguished business partners and devoted customers around the world, Cineworld has what it needs to reach new levels of success. We will continue to put our guests at the center of everything we do and look forward to continuing to break new ground in our industry.”
Foss and Acuna are joined by additional new Board members, appointed as of today, who will leverage their collective expertise in finance, entertainment and corporate governance to work closely with the leadership team and drive New Cineworld’s strategy:
- Ann Sarnoff is the former Chair and CEO of Warner Bros., where she was responsible for film and television production, marketing, and distribution. Prior to that role, Sarnoff held senior executive positions at BBC Studios and Viacom. Sarnoff’s entertainment experience and industry relationships will prove invaluable for New Cineworld as the Group deepens its relationships with studios and content suppliers. Sarnoff also brings a honed sense of how to engage and delight global audiences.
- Patrick J. Bartels is the Managing Member of Redan Advisors LLC who brings deep strategic planning expertise along with his more than 20 years of capital markets, M&A and investing experience across a broad universe of industries to help shepherd the Group into its new era postemergence. Having guided U.S. and international public and private companies, Bartels will also help New Cineworld maximize its businesses around the world.
- Stephen (Steve) Joyce is the former CEO of Dine Brands Global, the franchisor of IHOP and Applebee’s Grill + Bar, as well as a former executive at Marriott International. Joyce’s background in brand equity and hospitality as well as his deep knowledge of how to engage customers will help the Group enhance its relationship with moviegoers. In addition, Joyce’s real estate experience will assist New Cineworld in optimizing its footprint and theatre location strategy.
- Stefano Malfitano is a Principal at Cyrus Capital Partners whose experience managing investments in a variety of industries and geographies will provide New Cineworld with leadership in driving growth and positive financial results.
- Blythe J. McGarvie is the former CEO of LIF Group and former CFO of Hannaford Bros., a Fortune 500 company. McGarvie’s consumer brand experience, as well as her prior term on the board of Pepsi Bottling Group, Inc., will provide additional leadership depth to oversee the Group’s partnerships across its theatres.
Foss added: “Cineworld has a strong platform, and its brands – including Regal, Cinema City, Picturehouse, and Planet – are some of the most iconic in our industry. We are excited and energized by the bright future ahead of us and look forward to delivering a great guest experience to our valued customers, filled with high-quality entertainment and fun.”
Cineworld Group plc and London Stock Exchange Update
The Chapter 11 Companies’ emergence from their Chapter 11 cases follows the announcement on 31 July 2023 that administrators have been appointed in respect of Cineworld Group plc. As part of the Chapter 11 Companies’ emergence from their Chapter 11 cases, Cineworld Group plc has ceased to hold any interest in the Group. Cineworld continues to operate its global business and cinemas as usual without interruption and this has not and will not be affected by the entry of Cineworld Group plc into administration on 31 July
As announced then, the cancellation of Cineworld Group plc’s listing on the premium listing segment of the Official List of the Financial Conduct Authority and the admission to trading of its shares on the London Stock Exchange plc’s main market for listed securities is expected to take place at 8:00 a.m. (London time) on 1 August 2023.
Cineworld was founded in 1995 and is now one of the leading cinema groups in Europe. 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.