Big cinema advertising platform National CineMedia said today its plan of reorganization has been confirmed by a judge in United States Bankruptcy Court for the Southern District of Texas.
The company filed for Chapter 11 in April. It now expects to emerge in August or September.
The plan allows the company to eliminate debt and exit with a significantly stronger balance sheet. It will maintain its existing corporate structure, with publicly traded National CineMedia serving as the manager of NCM LLC. Existing management led by CEO Tom Lesinki will continue to lead the reorganized company.
It intends to enter into an approximately $55M exit financing facility, which will be used to fund operations and growth initiatives.
“Today’s announcement marks a major step forward in our financial restructuring, positioning the Company for long-term success,” Lesinski said. “As we charge ahead toward emergence, we will continue to deliver our full funnel of advertising solutions, connecting brands with NCM’s young, diverse, and sought-after movie audiences. We extend our appreciation to our employees, customers, and partners for their unwavering support throughout this process and are excited to continue our work together in the future.”
NCMI serves over 19,500 screens in more than 1,500 theaters, including the three biggest national chains. AMC, Regal and Cinemark — who remain big shareholders. It tangled, then settled, with Regal during the bankruptcy of Cineworld over a long-term agreement with the giant exhibitor.
Shares jumped nearly 6% to about 31 cents. The company’s very low stock price over months has put its Nasdaq listing at risk. Last week, the company announced plans for a reverse stock split, which would boost the share price. A stock falls outside the exchange’s minimum listing requirements if it trades below $1 for 30 consecutive days. National Cinemedia was recently given until July 26 to get into compliance.