Cinema giant Cineworld has successfully completed its financial restructuring process and emerged from its Chapter 11 bankruptcy cases in the U.S. The company also announced the appointment of new board members, including former Warner Bros. top executive Ann Sarnoff.
As part of the financial restructuring, shareholders have been wiped out, with a new incorporated company controlled by lenders now controlling Cineworld. The movie theater chain and its various parts have reduced their indebtedness by approximately $4.53 billion, raised approximately $800 million in new equity capital, and secured new debt financing worth approximately $1.71 billion. This stronger and recapitalized balance sheet puts the company in a favorable position to pursue future strategic initiatives and continue providing leading cinematic experiences globally.
Under the leadership of chair Eric Foss, the board of Cineworld has also been filled with experienced business leaders. Foss, who previously served as chair and CEO of Pepsi Bottling Group and Aramark, expressed his excitement about the company’s transformed balance sheet and right-sized capital structure, stating that Cineworld is ready to succeed in the constantly changing movie theater industry. Foss introduced the impressive group of directors who will be joining the new board and bringing their expertise and leadership to grow Cineworld’s business and ensure that their theaters remain moviegoers’ first choice.
Joining Foss on the board is Eduardo Acuna, Cineworld’s new CEO, along with other experienced business leaders. Acuna, who previously served as president of Cinépolis Americas and Cinépolis Do Brazil, expressed his honor in joining Cineworld and his commitment to unlock the company’s great potential. With the talented group of employees, distinguished business partners, and devoted customers, Acuna believes that Cineworld has what it takes to reach new levels of success and continue breaking new ground in the industry.
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In addition to Foss and Acuna, there are other board members who will leverage their collective expertise in finance, entertainment, and corporate governance to work closely with the leadership team and drive Cineworld’s new strategy.
Ann Sarnoff, former chair and CEO of Warner Bros., is one of the new board members. With her entertainment experience and industry relationships, Sarnoff’s presence will be invaluable as Cineworld deepens its relationships with studios and content suppliers. She also brings a honed sense of how to engage and delight global audiences.
Patrick J. Bartels, managing member of Redan Advisors, brings deep strategic planning expertise and over 20 years of capital markets, M&A, and investing experience across various industries. His guidance will help Cineworld navigate its new era post-emergence and maximize its businesses around the world.
Stephen (Steve) Joyce, former CEO of Dine Brands Global and a former executive at Marriott International, brings his background in brand equity, hospitality, and customer engagement to enhance Cineworld’s relationship with moviegoers. His real estate experience will also come in handy in optimizing the company’s footprint and theater location strategy.
Stefano Malfitano, a principal at Cyrus Capital Partners, brings experience in managing investments in various industries and geographies. His leadership will be critical in driving growth and positive financial results for Cineworld.
Blythe J. McGarvie, former CEO of LIF Group and former CFO of Hannaford Bros, will provide additional leadership depth with her consumer brand experience. Her prior term on the board of Pepsi Bottling Group Inc. positions her well to oversee Cineworld’s partnerships across its theaters.
With the completion of its financial restructuring, Cineworld is now poised for a fresh start under the leadership of the new board members. The company is ready to pursue new strategic initiatives and investments in order to continue providing unforgettable cinematic experiences for audiences around the world.
