Cineworld to Raise $2.26 Billion as Part of Restructuring Plan

Indebted theater chain Cineworld Group Plc aims to raise $2.26 billion as part of its plan to shave debt and exit bankruptcy.

(Bloomberg) — Indebted theater chain Cineworld Group Plc aims to raise $2.26 billion as part of its plan to shave debt and exit bankruptcy.

The capital raise will comprise of a first lien senior secured debt credit facility of $1.46 billion, as well as the issuance of new common stock for an aggregate purchase price of $800 million, according to a document filed on Sunday with the Bankruptcy Court for the Southern District of Texas.

Cineworld last week reached a deal with creditors to trim billions of dollars of debt from its balance sheet. The world’s second-largest theater chain has been struggling to find buyers for the company.

Read more: Cineworld Reaches Deal With Creditors to Shave Billions of Debt

The proceeds of the capital raise will be used to satisfy debtor claims, pay fees and other expenses and provide working capital to debtors, according to the filing.

The company will also enter into a revolving credit facility of up to $200 million, as part of the restructuring.

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