National CineMedia Inc., the nation’s largest movie-theater advertising network, filed for Chapter 11 bankruptcy late Tuesday.
Thank you for reading this post, don't forget to subscribe!Earlier in the day, CineMedia stock
NCMI,
shot more than 50% higher after movie-theater operator AMC Entertainment Holdings Inc.
AMC,
disclosed that it owned a significant chunk of the company.
See: National CineMedia stock rockets on record volume after AMC buys more than 9% stake
In a statement late Tuesday, CineMedia said it was voluntarily filing Chapter 11 “to facilitate its debt restructuring.”
According to court filings, the Centennial, Colo.-based company estimated assets of between $500 million and $1 billion and liabilities of between $1 billion and $10 billion.
“Today’s transactions will position us to deliver the strong results our advertisers and cinema partners have come to expect from us today and well into the future,” Chief Executive Tom Lesinski said in a statement. “We are entering this process with the overwhelming support of our secured lenders and key stakeholders, which we expect will enable us to swiftly and responsibly emerge as a stronger company.”
CineMedia has been in dire financial straits since the pandemic disrupted the movie-theater industry, and in November warned there was “substantial doubt” about its ability to remain in business.
The move came a day after CineMedia’s largest investor, Regal Cinemas parent Cineworld
CINE,
laid out its plans to emerge from bankruptcy in the next few months.
Despite Tuesday’s rally, CineMedia stock is down 91% over the past 12 months.
