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“Bankrupt Regal parent Cineworld said it had multiple bids for all or some of its assets in initial expressions of interest due last week. Its business includes Regal in the U.S.; Cineworld and Picturehouse in the UK and Ireland; and “rest of world” cinemas in Central and Eastern Europe, and Israel.”
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People do notice after all!In Regal’s case, some industryites have also blamed the quality of some of its theaters, although the company that’s been led by Mooky Greidiger – and was founded by his grandfather — took exception to that at a previous hearing. -
Sadly, Regal has the best theaters in the Denver area - they still have moving masking in many theaters, and they also have the Regal Continental RPX which was built in the 1960s and is a legacy big house, as well as the last real IMAX venue in Denver, the Colorado Center.
The Denver Museum of Nature and Science ripped out their IMAX and remodeled it into a "D3D Cinema" screen:
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I wouldn't want any of the sites.... Nope! To bring them up to comfort and technical standards would cost a fortune and the isolation between rooms is still going to be awful. Better to just tear it down and build a new one.Comment
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December 5, 2017: "Cineworld will fund the acquisition of Regal through approximately $4.0 billion of new debt facilities and an approximately $2.3 billion equity raise by way of a rights issue, including a commitment for GCH, Cineworld’s 28% shareholder, to fully subscribe to its pro rata portion of the rights issue."
https://www.businesswire.com/news/ho...orld-Group-PLC
The reasons for the collapse of Regal are mainly the pandemic combined with a crushing amount of debt due to the acquisition by Cineworld at the end of 2017, two years before the onset of the pandemic. It was a questionable acquisition before the pandemic, which pushed them off the cliff. Most of their complexes will live on under new operators, after Regal/Cineworld divests their assets under the bankruptcy order. They are going to be carved up like a turkey at thanksgiving dinner.Comment
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They were certainly on an acquisition spree. Pre-covid they made a deal to buy Cineplex (the largest cinema chain in Canada) and then refused to follow through (probably because they couldn't afford it after covid), and were subsequently ordered by a Canadian court to pay Cineplex 1.24 billion dollars in damages. As far as I know none of that has actually been paid, though.Comment
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https://www.cnn.com/2023/02/24/media...ers/index.html
Regal Cinemas owner Cineworld says shareholders will be wiped out
By Olesya Dmitracova, CNN
Published 7:08 AM EST, Fri February 24, 2023
London (CNN) —
Regal Cinemas owner Cineworld, which filed for Chapter 11 bankruptcy protection last year, said Friday that it expected shareholders to be wiped out entirely, meaningthey should not expect to recover any funds from a restructuring or sale of the business.
The world’s second-largest movie theater chain — hit hard by the pandemic, like many cinema operators — has been in talks with its “key stakeholders” to develop “a plan of reorganization” that would allow it to emerge from bankruptcy, it said in a statement.
Cineworld said it had also received a number of non-binding proposals to buy some or all of its business, but none of them involved an all-cash bid for the entire company.
“Based on the proposals received to date, it is not expected that any sale transaction will provide any recovery for the holders of the company’s equity interests,” it said.
The same would apply to a restructuring “in light of the level of existing debt that is expected to be released under any plan,” it added.
Cineworld shares have lost nearly 98% of their value over the past two years. The stock plunged more than 40% in early trading in London. By 7 a.m. ET, it was down 29%.
The British company continues to operate its theaters around the world as usual, it reiterated in its statement on Friday. Last month, Cineworld announced it was closing 39 more movie theaters in the United States. Around 500 remain across the country.
The pandemic forced movie theaters around the globe to close, dealing a devastating blow to Cineworld and others in the industry, and is still affecting visitor numbers. The company lost $2.7 billion in 2020 and another $566 million in 2021. It reported another loss, of $294 million, in the six months ending in June 2022.
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From This Is Money (Daily Mail's business news supplement):
Cineworld expects to emerge from bankruptcy protection in July but investors are still set to be wiped out
By Jane Denton For This is money; Updated: 03:41 EDT, 25 May 2023
Cineworld expects to exit bankruptcy protection in July this year, the embattled cinema group revealed on Thursday.
The firm told investors it had received further backing from lenders for its restructuring plan.
However, shareholders will still be wiped out, with the group confirming the announcement would not provide any relief for investors.
It said: 'In light of the level of existing debt that is proposed to be released under the Group Chapter 11 Companies’ plan of reorganisation, the Proposed Restructuring does not provide for any recovery for holders of Cineworld’s existing equity interests.'
In September, the UK-based cinema chain filed for Chapter 11 bankruptcy protection in the US as it sought to restructure after facing dwindling audience numbers and huge debts.
Cineworld said its cinemas and operations will continue running as normal while the business re-emerges as a going concern in July.
The firm revealed it now has support from lenders controlling around 99 per cent of its legacy lending facilities and at least 69 per cent of its outstanding debts for its overhaul plan.
Cineworld, which also owns the Picturehouse brand and is the world's second biggest cinema group, is moving forward with plans to restructure its roughly £4billion debt pile to allow it to exit bankruptcy.
Filing for a Chapter 11 bankruptcy means a company intends to reorganise its debts and assets to have a fresh start, while remaining in business.
The company stressed that it was continuing to run its venues 'as usual without interruption.'
It said: 'Cineworld and its brands around the world, including Regal, Cinema City, Picturehouse and Planet, are continuing to welcome customers to cinemas as usual.
'The group continues to honour the terms of all existing customer membership programmes, including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the UK.'
The embattled chain failed to recover from the pandemic’s impact on the leisure and hospitality sectors, with rolling lockdown restrictions severely restricting trade over a two-year period.
In April, Cineworld dropped plans to sell its businesses in the US, the UK, and Ireland after failing to find a buyer.
Cineworld shares rose today and were up 1.91 per cent to 1.10p this morning, having plummeted over 95 per cent in the last year.
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Telegraph:
Cineworld to file for administration in the UK in battle to save cinema chain
Cinema chain’s chiefs are poised for payouts totalling $35m as creditors take over
By Daniel Woolfson 26 June 2023 • 11:33am
Cineworld is to file for administration in the UK as part of restructuring plans which will wipe its shareholders out.
The chain, which filed for bankruptcy protection in the US last year amid spiralling debts and weaker audience numbers after the pandemic, said on Monday that it would apply for administration in the UK next month. Its shares will be suspended on the London Stock Exchange.
However, the chain, which runs 128 cinemas across the UK, said this would not impact its operations and cinemas would remain open.
A spokesman for the company said: “Cineworld continues to operate its global business and cinemas as usual without interruption and this will not be affected by the entry of Cineworld Group plc into administration.
“The group and its brands around the world – including Regal, Cinema City, Picturehouse and Planet – are continuing to welcome customers to cinemas as usual.”
The company has embarked on plans to restructure its debt pile which stands at around $5bn (£3.9bn), which include raising $800m through a rights offering, along with agreeing a further $1.46bn of new debt financing. Its lenders are taking control of the business.
Shares in the chain have fallen by more than 99pc in the last five years, plunging since the onset of the pandemic, when it was forced to close many sites.
Cineworld tried to find a buyer for its businesses outside the UK, US and Ireland after filing for bankruptcy protection in the US but no satisfactory offers materialised.
As its creditors prepare to take ownership, Cineworld’s chiefs are poised to take home almost $35m in payouts to leave the ailing cinema chain. The business’s longstanding chief executive Moshe ‘Mooky’ Greidinger, his brother and deputy Israel Greidinger, along with finance head Nisan Cohen and chief commercial officer Renana Teperber, will receive payments over 12 months as part of a transitional consulting agreement before they step down, the Financial Times reported.
This will bring an end to the Greidinger family’s longstanding involvement in the company. Mr Greidinger, whose grandfather founded the Cinema City chain in Israel in the 1930s, has been chief executive of the company since Cinema City merged with Cineworld in 2014.Comment
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I'll never understand how they can wipe out the investors yet remain in business.Comment
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