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Bankruptcy Court Grants Regal Cinemas Owner $785 Million Lifeline

A U.S. Bankruptcy Court in Texas has approved $785 million in immediate financing relief for Regal Cinemas’ parent Cineworld Group to keep the world’s No. 2 theater operator functioning and be able to pay its bills. The rest of the assembled $1.94 billion debtor-in-possession fiscal support will be doled out over time by the court judge.

Cineworld, which operates 9,139 screens across 10 countries, earlier this week filed for Chapter 11 bankruptcy protection after reportedly disclosing it had just $4 million in the bank to fund operations. The U.K.-based theater operator was hit hard by the pandemic, which forced it shutter operations for more than a year.

The chain listed liabilities from $10 billion to $50 billion. Studio debtors reportedly include Universal Pictures, which is owned $20.5 million; Lionsgate ($15.1 million); Disney ($14.1 million); Imax ($11.4 million); Warner Bros. Pictures ($7.7 million) and Sony Pictures ($3.3 million).

“Today’s approval of our requested ‘first day’ relief is a positive step forward for the group and our restructuring efforts,” CEO Mooky Greidinger said in a statement. “As we position Cineworld for long-term growth, through this Chapter 11 process and beyond, we remain steadfast in our commitment to providing our guests with the most memorable moviegoing experiences and maintaining our long-standing relationships with our business partners.”
 

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