Adrian J Cotterill, Editor-in-Chief
In April cinema advertising network National CineMedia (NCM) announced that they had filed for Chapter 11 bankruptcy.
Regular readers and industry veterans may remember that National CineMedia was formed back in 2005 as a joint venture between AMC and Regal, with Cinemark joining later that year as a founding member. It quickly grew into North America’s largest cinema advertising network.
NCM INC. CEO Tom Lesinski was quoted as saying “Our category-defining platform will continue to empower advertisers to reach our sought-after, young moviegoing audiences with scale and measurability.”
We understand that they are planning a series of debt restructuring measures that they hope will return the company to a much stronger financial position.
National CineMedia LLC owns a 48 percent interest in, and is the managing member of, National CineMedia, that filed for Chapter 11 in the United States Bankruptcy Court for the Southern District of Texas and entered into a Restructuring Support Agreement (RSA) with the support of secured lenders. Under the RSA, NCM’s debt will be converted into equity, with NCM Inc. receiving an approximately 14 percent ownership interest in the restructured company.
Interestingly, in filing for Chapter 11, NCM has joined its co-founder Cineworld, which operates in North America as Regal. Cineworld filed for Chapter 11 in September 2022 and earlier this month announced their own plan to restructure and emerge from Chapter 11.
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