This past week Cineworld announced it had reached an agreement with existing lenders to emerge from Chapter 11 bankruptcy by the middle of this year while providing the company with significant operating capital to execute future business. The world’s second largest movie theatre operator made the announcement through the London Stock Exchange (inconveniently) on a Sunday, forcing trade publications and business journals to summarize the news as quickly as possible. In their efforts to be the first ones to post, as is their coverage mandate, most of this media outlets simply pulled key points from the update without really explaining what any of it meant. Sure there where lots of numbers, financial verbiage and relevant facts, though little if any analysis.
This post is meant to review some of the agreement’s pertinent points with a bit more detail. In answering some of the questions we’ve been asked by readers about the deal we’ll not only identify key terms, but try to read between the lines when necessary.
Source: How Cineworld Hopes to Restructure and Exit Bankruptcy – Celluloid Junkie