(Reuters) – National CineMedia LLC said on Tuesday it would emerge from Chapter 11 on or around August or September as its reorganization plan has been confirmed by the U.S. Bankruptcy Court for Southern District of Texas.
The biggest movie-theater advertising firm in North America will maintain its existing corporate structure with listed holding company National CineMedia Inc after emerging from bankruptcy protection.
National CineMedia’s shares rose as much as 41% in extended trading.
National CineMedia LLC had filed for Chapter 11 bankruptcy protection in April and said it had entered into a restructuring agreement with its lenders, underscoring the challenges facing the cinema industry, which is yet to bounce back from the pandemic slump.
The company will also enter into a $55 million exit financing facility, which it would use to fund operations and growth initiatives. Its existing management team will continue to lead the reorganized company.
(Reporting by Granth Vanaik in Bengaluru)