Regal’s owner has granted Cineworld access to up to $785 million in funding

A US bankruptcy court has granted film giant Cineworld Group access to financing of up to $785 million, which the company says “provides sufficient liquidity” to “meet current obligations”.

Cineworld, which operates the Regal theaters in the US, and some of its subsidiaries filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Southern District of Texas earlier this week and have now received approval from the Court of US Bankruptcy in the Southern District of Texas for “day one” relief related to your Chapter 11 case.

As part, the court “granted the Group immediate access to approximately US$785 million in a debtor-in-possession (DIP) financing facility of approximately US$1.94 billion, together with the Group’s available cash reserves and cash of operations”. It is expected to provide sufficient liquidity for Cineworld to meet its ongoing obligations, including post-petition obligations to suppliers and suppliers, as well as employee salaries, wages and benefits programs,” the company said. “The remaining DIP facility will be made available with court approval on a final basis.”

Cineworld added that the 11 companies in the group “aim to pay suppliers and suppliers in full and at normal rates for goods and services received in the Chapter 11 proceeding.” Employees will also continue to receive their regular salaries and benefits.”

The world’s second largest exhibition has 747 seats and 9,139 screens in 10 countries.

Approval of the requested “day one” grant is “a positive step for the group and our restructuring efforts,” said Moshe “Mook” Greidinger, CEO of Cineworld. “As we position Cineworld for long-term growth through this Chapter 11 process and beyond, we remain steadfast in our commitment to providing our guests with the most memorable cinematic experiences and maintaining long-term relationships with our customers. . Business partners”.