Cineworld Emerges From Chapter 11 Bankruptcy, Shareholders Lose Everything.

Cineworld, the cinema giant and owner of Regal Entertainment, has successfully completed its financial restructuring and come out of its Chapter 11 bankruptcy cases in the U.S. The company announced this news on Monday and also introduced new board members, one of whom is former Warner Bros. top executive Ann Sarnoff.

As part of the financial restructuring, shareholders of Cineworld lost their ownership, and the company is now controlled by a new, incorporated entity controlled by lenders. This restructuring allowed the movie theater chain and its various parts to reduce their overall debt burden by approximately $4.53 billion. Additionally, they raised approximately $800 million in new equity capital and secured new debt financing worth approximately $1.71 billion.

With this newly strengthened and recapitalized balance sheet, the company is now well-positioned to pursue future strategic initiatives. They intend to continue providing top-notch cinematic experiences for customers globally, including investments in new screen formats and enhancements to their flagship theaters.

Overall, the financial restructuring has put Cineworld on a path for growth and improvement, allowing them to offer better cinematic experiences to their customers while also reducing their financial risks.

A UK administrator had been named for Cineworld earlier in the day, and the company's shares had been delisted from the London Stock Exchange.

Cineworld's board, led by chair Eric Foss, who previously served as chair and CEO of Pepsi Bottling Group and Aramark, is now complete. Foss said, "With a better financial situation and the right amount of capital, Cineworld is ready to succeed in the ever-changing movie theater industry." Foss expressed excitement about introducing the impressive group of directors joining the new board. Their expertise and leadership in different areas will help Cineworld grow its business and make sure their theaters remain the top choice for enjoyable movie experiences.

Eduardo Acuna, Cineworld's new CEO, joins Foss and other seasoned business professionals on the board. Acuna was previously president of Cinépolis Americas and Cinépolis Do Brazil.

"I am honoured to join Cineworld and work with the experienced management team to realise the company's tremendous potential," Acuna stated. "With its talented workforce, significant number of distinguished business partners, and devoted customers worldwide, Cineworld has everything it needs to reach new heights of success." We will continue to put our guests first in everything we do and look forward to breaking new ground in our industry."

Additional board members, according to the firm, will "leverage their collective expertise in finance, entertainment, and corporate governance to work closely with the leadership team and drive new Cineworld's strategy," joining Foss and Acuna on the board.