Cineworld Group, a United Kingdom-based movie theater chain that purchased Regal Cinemas four years ago, has filed for bankruptcy protection in the Southern District of Texas.
In first-day filings, Cineworld claims that it has $5 billion in debts — much of it as the result of debt assumed during the acquisition of Regal and then lost business stemming from the Covid-19 pandemic — but that it has $1.9 billion in financing committed from existing secured creditors.
The company is also involved in a billion-dollar litigation in Canada over its failed 2020 takeover of Cineplex Inc.
Cineworld hired Kirkland & Ellis, Jackson Walker and Slaughter and May as its legal counsel, and Alix Partners as its financial advisor. Jackson Walker partner Matt Cavenaugh in Houston filed the initial Chapter 11 petition for Cineworld. Cavenaugh works as local counsel for Kirkland’s bankruptcy clients in the Southern District of Texas.
The case has been assigned to Bankruptcy Judge Marvin Isgur in Houston, who is part of the complex corporate restructuring program. First-day hearings are scheduled for Thursday at 8 a.m.
The case number is 22-90168.