31 Jul 2023 15:10
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION (DIRECTLY OR INDIRECTLY) IN WHOLE OR IN PART IN, INTO OR FROM THE UNITED STATES OF AMERICA OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION
CINEWORLD GROUP PLC (in administration)("Cineworld" or the "Company")
Entry of Cineworld Group plc into Administration
Further to its announcement on 28 July 2023, Cineworld (together with its subsidiaries, the "Group") announces that, following an application by Cineworld Group plc to the High Court in London and as part of the steps to implement the restructuring of the Group, Cineworld Group plc has entered administration today pursuant to a court order under the Insolvency Act 1986 and Simon J Appell, Ian J Partridge and Catherine M Williamson of AlixPartners UK LLP have been appointed as joint administrators of Cineworld Group plc (the "Joint Administrators").
The administration order applies only to Cineworld Group plc itself (as the listed parent company of the Group) and not to any of the operating companies or subsidiaries in the rest of the Group, and will not affect the status or rights of any of the Group's employees. As previously announced by Cineworld, the restructuring of the Group, which will be implemented by way of the administration process, will transform the Group's balance sheet and provide it with significant additional liquidity to fund its long-term strategy.
Cineworld further announces that, following an application by Cineworld to the Financial Conduct Authority (the "FCA"), the listing of Cineworld Group plc's ordinary shares (the "Shares") on the Official List of the FCA will be cancelled with effect from 8.00 a.m. (London time) tomorrow morning. The Shares will cease to be admitted to trading on the main market for listed securities of the London Stock Exchange plc with effect from the same time.
Should you have any queries, please do not hesitate to contact us at:
General enquiries: cineworldgroupplc@alixpartners.com
Press enquiries: mediarelations@alixpartners.com
Business as usual
The Group continues to operate its global business and cinemas as usual without interruption and this will not be affected by today's appointment of the Joint Administrators nor by the cancellation of Cineworld Group plc's listing. The Group and its brands around the world - including Regal, Cinema City, Picturehouse and Planet - are continuing to welcome customers to cinemas as usual. The Group continues to honour the terms of all existing customer membership programmes, including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the United Kingdom.
Additional information
Information regarding Cineworld's Chapter 11 cases is available at the following website: https://cases.ra.kroll.com/cineworld.
About Cineworld
Cineworld was founded in 1995 and is now one of the leading cinema groups in Europe. Cineworld's acquisition of Regal Entertainment Group has created the second largest cinema business in the world (by number of screens). Cineworld currently operates in the United Kingdom, Ireland, Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania, Israel and the United States.
About AlixPartners
AlixPartners is a results-driven global consulting firm that specialises in helping businesses successfully address their most complex and critical challenges. Our clients include companies, corporate boards, law firms, investment banks, and others. Founded in 1981, AlixPartners is headquartered in New York and has offices in more than 20 cities around the world. For more information, visit www.alixpartners.com.
Forward looking statements
This announcement is not intended to and does not constitute and should not be construed as, considered a part of, or relied on in connection with any information or offering memorandum, security purchase agreement, or offer, invitation or recommendation to underwrite, buy, subscribe for, otherwise acquire, or sell any securities or other financial instruments or interests or any other transaction.
This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Group and certain plans and objectives with respect thereto, including with respect to the Group's ordinary shares. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "hope", "aims", "continue", "will", "may", "should", "would", "could", or other words of similar meaning. These statements are based on assumptions and assessments made by the Group in light of their experience and their perception of historical trends, current conditions, future developments and other factors the Group believes appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this document could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this document. The Group does not assume any obligation to update or correct the information contained in this document (whether as a result of new information, future events or otherwise), except as required by applicable law.
There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions (including any potential sale by the Group) and the risks, uncertainties and costs related to the Chapter 11 cases.
Nothing in this announcement is intended as a profit forecast or estimate for any period and no statement in this announcement should be interpreted to mean that earnings, profit or earnings or profit per share or dividend per share for the Group for the current or future financial years would necessarily match or exceed the historical published earnings, profit or earnings or profit per share or dividend per share for the Group.
Simon J Appell, Ian J Partridge and Catherine M Williamson were appointed Joint Administrators of the Company. Simon J Appell, Ian J Partridge and Catherine M Williamson are licensed in the UK by the Insolvency Practitioners Association. The affairs, business and property of the Company are being managed by the Joint Administrators, who act as agents of the Company without personal liability.