The Bankruptcy, Restructuring & Distressed Debt practice at Glenn Agre Bergman & Fuentes, known for its creative problem-solving and litigation prowess, has been sought out to advocate in the closely watched Cineworld Group Plc Chapter 11 bankruptcy proceedings now pending in the U.S. Bankruptcy Court for the Southern District of Texas. Cineworld, which sustained losses in the pandemic, filed for bankruptcy protection in September with more than $5 billion in debt.
Glenn Agre partners Andrew Glenn, Kurt Mayr, Shai Schmidt, and Stacy Tecklin, and associates Agustina Berro, Rich Ramirez, Naznen Rahman, Maggie Lovric, and Avelino Garcia were brought in to represent an ad hoc group of lenders to Cineworld, the world’s second-largest movie theater chain, after a reorganization plan was agreed to with certain lenders that threatens to dilute the rights of a group of minority lenders who were blocked from joining.As reported in Bloomberg Law, this week Glenn Agre unveiled the group’s proposal in court that provides a superior exit financing package than the current offer. In just nine days, the Glenn Agre team secured commitments for an exit term loan facility of nearly $1.5 billion, a deal that is cheaper than the current plan and at a much better interest rate. The group is offering a rate that’s 2.5% lower than that in the current offer, which could save Cineworld a significant amount of money over time.
Convincing Judge Isgur of the U.S. Bankruptcy Court for the Southern District of Texas that equity commitments could be obtained to secure a better deal with more time, the judge agreed and granted the group an additional two weeks to solidify a proposal that could be materially better for all parties involved. The parties are slated to reconvene May 2.
Read more in Bloomberg Law.