Cineworld Granted “First Day” Relief After Filing for Bankruptcy

Days after filing for bankruptcy, Cineworld (London), parent company of American movie theater chain Regal Cinemas (Knoxville, Tenn.), has been granted “first day” relief and access to $785 million of a $1.9 billion debtor-in-possession financing facility to stay in operation, according to a company press release.

Cineworld recently announced it was unable to meet its financial obligations in its bankruptcy filing Sept. 7 in the U.S. The company said Chapter 11 protections would allow Cineworld to “significantly reduce the group’s debt, strengthen its balance sheet and provide the financial strength and flexibility to accelerate, and capitalize on, Cineworld’s strategy in the cinema industry.”

The immediate debtor-in-possession relief, which was granted Friday, will allow Cineworld to meet its ongoing obligations to vendors and suppliers, as well as employee wages, salaries and benefits programs. The remainder of the $1.9 billion financing will be made available pending final court approval.

“Today’s approval of our requested ‘first day’ relief is a positive step forward for the group and our restructuring efforts,” Regal Entertainment Group CEO Mooky Greidinger said in statement.

Cineworld operates 747 theaters and 9139 screens globally.