{"id":108222,"title":"As Cineworld exits Chapter 11, its shareholders receive no benefits.","publisher":"Share Talk","author":"sharetalk","published":"2023-05-25T09:11:48+00:00","modified":"2023-05-25T09:12:50+00:00","canonical_url":"https://www.share-talk.com/as-cineworld-exits-chapter-11-its-shareholders-receive-no-benefits/","markdown_url":"https://www.share-talk.com/as-cineworld-exits-chapter-11-its-shareholders-receive-no-benefits.md","json_url":"https://www.share-talk.com/as-cineworld-exits-chapter-11-its-shareholders-receive-no-benefits.json","category":"B2B","categories":["B2B","Business & Support Services","Food & Beverages","Technology","Technology, Media & Telecoms"],"tags":["bankruptcy","box","Chapter 11","cinema","Cineworld","courts","debt","finances","furlough","industry","Insolvency","Office","poor","sales","Share Talk","UK","USA"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&ssl=1","format":"news","language":"en-GB","content":"**Cineworld Group PLC (LSE: CINE),** a prominent cinema chain, has announced its plan to exit Chapter 11 bankruptcy protection by July. The restructuring strategy set to be implemented will unfortunately leave equity shareholders with nothing.\n\nThe company, which holds the position as the world’s second-largest cinema operator, was compelled to seek bankruptcy protection in the US following a lacklustre recovery post-pandemic and escalating inflationary pressures.\n\nCineworld affirmed that its subsidiaries, which include Regal, Picturehouse, and Cinema City, will continue operations as normal. All membership programs are to be maintained and honoured.\n\nThe UK-based company’s lenders gave their consent to a restructuring support agreement as well as a backstop commitment agreement (BCA), Cineworld announced, after filing these resolutions in the US at the beginning of April.\n\nIn May, US courts approved the BCA terms, enabling Cineworld to generate funds for an exit facility while requiring the group to cover any associated fees.\n\nThe cinema operator acknowledged this approval as another encouraging advancement for the Group Chapter 11 Companies towards the execution of the proposed restructuring.\n\nThis update follows the revelation just over a month ago that Cineworld abandoned its search for a potential buyer. All bids presented were deemed too low by its lenders."}