Simpson Thacher Advises Term Loan Lenders as Cineworld Closes the Restructuring of its U.K. Operations
10.02.24
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Simpson Thacher advised the ad hoc group of term loan lenders to Cineworld, in connection with the successful completion of a comprehensive restructuring of its U.K. group. The transaction, implemented using interlocking restructuring plans in the High Courts of England & Wales, sees the right-sizing of the U.K. group’s lease estate and a recapitalisation of the U.K. group’s balance sheet (including a significant equity injection from the U.S. group).
Cineworld, which operates cinemas in ten countries (including in the U.S. and the U.K.), has faced significant challenges in recent years – including the impact of government-enforced lockdowns during the Covid-19 pandemic, and the slowdown in the movie industry following industrial action in Hollywood in 2023. This restructuring transaction follows Cineworld’s 2023 Chapter 11 plan, which provided much needed liquidity and substantially right-sized both its debt stack and its U.S. leases.
The Simpson Thacher team includes James Watson, Tom Wilson and Chloe Potter (Restructuring).