The details of Cineworld’s bankruptcy process in the U.S. are being worked out in filings by the exhibitor to a federal bankruptcy court. The U.K.-based exhibitor operates more than 500 Regal Cinemas locations in the U.S. and approximately 750 theatres globally. In September, the company filed for bankruptcy protection in the U.S. in an attempt to shed some of its debts, contracts, and other financial obligations.
Cineworld’s post-bankruptcy future is still unclear, whether it winds up emerging from bankruptcy as a stand-alone company with a more sustainable financial structure or sells off some or all of its theatres to rival exhibitors.
This week, the U.S. Federal Bankruptcy Court in the Southern District of Texas issued an order that allows Cineworld to access bridge financing to continue operations and a reduction in its lease payments to its many landlords across the country.
It also ordered the exhibitor to begin a marketing process, “which shall seek to obtain interested parties …that may wish to effectuate a value-maximizing transaction with respect to the debtor’s assets.” In other words, the “For Sale” sign has been posted and potential buyers are now lining up to inspect the property.