Business
Cineworld secures approval for restructuring plan to reduce rent
Cineworld has received crucial approval from creditors for its restructuring plan, which includes rent reductions and investments of up to £35 million to save its UK business and avert impending insolvency.

Here's the translation of the heading:
"The ailing cinema operator Cineworld has received the green light from its creditors for a controversial restructuring plan, which includes rent reductions or the complete elimination of rent payments, in order to save the company's UK business. Cineworld operates 101 cinemas in the United Kingdom and filed for bankruptcy last year.
On Friday, the company informed creditors, including landlords and lenders, that an agreement had been reached, according to two people familiar with the matter. The creditors had previously voted on the proposal. The plan represents a significant step in Cineworld's restructuring process, but it still requires court approval. A court hearing for the approval is scheduled for September 26, where a judge will decide whether the creditors would be better off with the plan rather than if Cineworld were to go bankrupt.
Cineworld initially did not comment on the matter. AlixPartners, who are advising on the restructuring process, also declined to comment.
Cineworld experienced rapid expansion as the company grew through a series of acquisitions under the leadership of the Greidinger family, including the purchase of Cinema City in 2014 and the US-based Regal Cinemas four years later. However, the strains of the pandemic rendered Cineworld's debt and lease obligations totaling $8.8 billion untenable, leading the company to file for Chapter 11 bankruptcy protection in the US in 2022. Cineworld was delisted from the London Stock Exchange after its share price plummeted, and the company came under the ownership of its creditors as part of a debt restructuring.
Should the plan not be approved, Cineworld warned that it would not be able to make due payments, such as the quarterly rent and insurance totaling £19.1 million, which are due this month. The company would then be forced to file for bankruptcy again.
Cineworld argued that many of its UK leases are currently above market level. The plan entails rent reductions to current market levels for 33 locations, while 10 locations would pay rent amounting to around 50 pence per sold ticket. For six locations, a rent exemption is necessary to remain economically viable. Cineworld's parent company plans to invest 16 million pounds into the company's short-term liquidity and provide up to 35 million pounds for renovations. Six cinemas are set to close.
Among the landlords of Cineworld mentioned in the restructuring documents are The Crown Estate and British Land. The Crown Estate declined to comment, and British Land initially did not respond to inquiries.
Some landlords rejected the plan. An unnamed landlord described the conditions before the vote as unfair, as they would allow lenders to receive cash provided by landlords.