- National CineMedia, Inc NCMI disclosed filing a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas.
- On April 11, the cinema advertising network shared the bankruptcy update to facilitate its debt restructuring.
- The company announced a series of debt restructuring transactions likely to strengthen its balance sheet meaningfully and position it for long-term growth.
- Also Read: Why Are National CineMedia Shares Shooting Upwards Today?
- National CineMedia, a non-filing entity, will remain the manager of NCM LLC. The deal will help the company convert its debt into equity of the reorganized company. NCM LLC will assume all of its critical contracts upon emergence.
- NCM LLC will operate its business and serve the national, regional, and local businesses that rely on its advertising network to reach entertainment fans in and out of movie theaters. The company's existing cash balances will provide the liquidity needed to continue operations in business.
- NCM Inc will receive an ownership interest in the restructured company of approximately 14%.
- Based on preliminary unaudited Q4 2022 results, NCM Inc expects to report total revenue growth of 44.4% year-on-year to $91.7 million in the fourth quarter of 2022.
- NCM's operating income increased 251.3% Y/Y, and adjusted OIBDA, increased nearly 130% Y/Y to $42.1 million.
- "Our fourth quarter marked a strong finish to the year as a diverse film release schedule, including Black Panther: Wakanda Forever and Avatar: The Way of Water, brought massive audiences back to theaters," Tom Lesinski, CEO of NCM Inc, said.
- The company held $1.13 billion in debt as of September 29, 2022.
- Also Read: AMC Britain Rival Cineworld Files Restructuring Plan in Bankruptcy Court, Shareholders to be Wiped Out
- Price Action: NCMI shares traded higher by 69.96% at $0.3503 premarket on the last check Wednesday.
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