© Reuters. FILE PHOTO: People walk past a Cineworld in Leicester’s Square, amid the coronavirus disease (COVID-19) outbreak in London, Britain, October 4, 2020. REUTERS/Henry Nicholls/File Photo
(Reuters) – Cineworld Group Plc plans to raise $2.26 billion, according to a court document filed on Sunday, as the theater chain aims to emerge from Chapter 11 bankruptcy in the first half of 2023.
The fundraising will consist of a $1.46 billion first lien senior secured debt facility and the issuance of new common shares for a total purchase price of $800 million, according to the U.S. bankruptcy court filing. in the Southern District of Texas.
Cineworld filed for US bankruptcy protection in September to try to restructure its debt after being hit by the pandemic and a lack of blockbuster movies. It has been struggling to find buyers.
Proceeds from the capital raising will be used to cover costs and expenses related to the restructuring, as well as to pay fees, other expenses and provide working capital to reorganized debtors, according to the statement.
