National CineMedia (NCM) has announced that its Plan of Reorganization has been confirmed by the United States Bankruptcy Court for the Southern District of Texas. This milestone comes less than three months after filing for Chapter 11 bankruptcy. The company is now expected to emerge from Chapter 11 in or around August or September of this year.
Under the confirmed plan, NCM will eliminate its debt through secured debt securitization. After the show, NCM will maintain its existing corporate structure with National CineMedia, Inc. serving as manager of NCM LLC. In addition, the company intends to enter into an exit financing facility of approximately $55 million, which will be used to fund operations and growth initiatives. The existing management team will continue to lead the reorganized company. NCM serves over 19,500 screens in over 1,500 theaters, including the only three national theater chains in the US
“Today’s announcement marks a major step forward in our financial restructuring, positioning the Company for long-term success,” said Tom Lesinski, chief executive officer of NCM. “As we move forward at the show, we will continue to offer our full channel of advertising solutions, connecting brands with NCM’s young, diverse and demanding film audience. We express 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.”