Cineworld's restructuring plans approved by High Court in London
- Four companies of Cineworld, including Cine-UK Ltd, faced imminent administration due to financial struggles.
- The High Court approved restructuring plans, allowing £16 million in funding and lease renegotiations for some sites.
- The approval is crucial for the companies' survival, as they have been severely impacted by the pandemic and industry strikes.
In London, four companies under the troubled cinema operator Cineworld have received approval for restructuring plans from a High Court judge, averting the risk of administration. The companies, which include Cine-UK Ltd and Cineworld Cinemas Ltd, are part of the UK division of the world's second-largest cinema chain and employ over 4,400 staff across 101 sites. The court was informed that these companies were currently unprofitable, significantly impacted by the Covid-19 pandemic and recent strikes by screen actors and writers. The restructuring will release £16 million in new equity funding and allow for renegotiation of leases for some sites, with six locations set to close due to financial unviability. The judge emphasized the necessity of these plans to prevent imminent administration, despite objections from landlords regarding lease negotiations. The US arm of Cineworld has provided substantial financial support to the UK companies, indicating the critical nature of the restructuring for their survival. The judge also permitted an appeal from the landlords, acknowledging the legal complexities involved in the case.