The Cineworld Group plc (LON: CINE) shares were cancelled from admission to trading on the London Stock Exchange. The move marks the end of the road for Cineworld as a public company after filing for administration in the UK Friday, 28 July 2023.
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The filing for administration was the last step for the company to exit its Chapter 11 Bankruptcy proceedings filed in the United States. The company was expected to exit the Chapter 11 bankruptcy cases on Monday, 31 July 2023, which led to today’s cancellation of its shares from trading on the LSE.
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Cineworld will now become a private company owned by its lenders, who were willing to forgive most of its debt worth $4.3 billion while allowing the cinema operator to conduct a rights issue and raise gross proceeds of $800 million.
The company will also receive $1.71 billion in new debt financing, including a new revolving debt facility of $250 million recently secured. Therefore, Cineworld will emerge as a much stronger company out of bankruptcy than when it started in September 2022.
As the theatre chain operator had warned on multiple occasions, the company’s equity shareholders were set to receive nothing for their shares in the firm given the massive amount of debt that Cineworld was set to release, which is what happened upon the cancellation of the company’s shares.
Cineworld now has new leadership, and it will be interesting to see how the company performs now that the Greidinger brothers are no longer at its helm. The new leaders are Eric Foss, a former Pepsi executive appointed Chairman.
The lenders appointed Eduardo Acuna as Cineworld’s new CEO to lead it into the future. Eduardo’s immediate former position was head of the Americas operations of Mexican theatre operator Cinepolis.
The company’s new owners appointed former Chair and CEO of Warner Bros Ann Sarnoff to its board and four other members to join the new Chairman and CEO. We’ll still follow Cineworld closely if it makes any other public announcements.
*This is not investment advice.
Cineworld share price.
The Cineworld shares were officially cancelled from trading on the London Stock Exchange.
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