The top management of multinational cinema chain Cineworld are to receive up to $35 million to exit the company as it emerges from Chapter 11 proceedings, according to a report.
The company’s creditors plan to take control of the company when the bankruptcy proceedings conclude in July, the Financial Times reported on Friday.
The lenders committed to pay CEO Mooky Greidinger, his brother and deputy chief executive Israel Greidinger, finance head Nisan Cohen and chief commercial officer Renana Teperberg between $30 million and $35 million in cash in the year following their exit, the Financial Times said, citing people familiar with the matter. The payout is to “make the bankruptcy agreement more palatable,” the report added.
Cineworld offered no comment when contacted by Variety.
Cineworld Group and its subsidiaries had commenced Chapter 11 cases in the United States Bankruptcy Court in September 2022. The group now expects to emerge from the Chapter 11 cases in July and will continue to operate its cinemas as usual without interruption, it said in May.
The restructuring, which was announced in April, “now has the support of lenders holding and controlling approximately 99% of the legacy facilities and at least 69% of the outstanding indebtedness under the debtor-in-possession facility of Cineworld and certain of its subsidiaries,” the group had said in a statement in May.
In May, the lenders also agreed to amended and restated versions of the restructuring support agreement and the backstop commitment agreement, which were filed with the United States Bankruptcy Court.
Cineworld owns the Regal cinema chain and is the second largest movie theater operator in the world. Its shares are listed in the U.K.