National CineMedia, the largest provider of in-theatre advertising programs to exhibitors in the U.S., has been successful in having its reorganization plan approved by the bankruptcy court in the Southern District of Texas.
While the current management team will remain in place, the plan reduces and restructures the sizeable debt that drove the company into bankruptcy. CEO Tom Lesinski hailed it as “a major step forward in our financial restructuring, positioning the Company for long-term success.”
NCM is desperate to establish a new financial footing after its public struggles have caused its share price to plummet to as low as 31 cents, putting the company at imminent risk of delisting from the NASDAQ exchange. Last week, NCM announced a reverse stock split that would result in a substantial increase in the share price of the stock, allowing it to rise to over $1/share and thereby stave off delisting.