National CineMedia receives confirmation of Chapter 11 plan

By Sarah Lizee

Olympia, Wash., June 27 – National CineMedia, LLC received confirmation of its Chapter 11 plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the plan is based on a restructuring support agreement with the support of secured lenders, through which all the company’s debt will be converted into equity of the reorganized company.

The plan now incorporates a settlement reached with the official committee of unsecured creditors, which had previously objected to the plan.

Through the settlement, the cash pool for general unsecured creditors was lifted to $15 million from $250,000. Of that amount, $14.5 million will be contributed by the debtor and $500,000 will be contributed by National CineMedia, Inc., the direct parent of the debtor, through which the parent will not receive any new common units associated with the contribution.

As part of the settlement, the threshold for general unsecured convenience claims was increased to $50,000, with an option for holders of allowed general unsecured claims (other than unsecured funded debt claims) above $50,000 to opt into treatment for general unsecured convenience claims and reduce their allowed claim to $50,000.

As before, holders of other secured claims and other priority claims are set to be paid in full.

The $957.6 million of secured debt claims are expected to be allowed in the amount of $471.3 million. Holders will receive a pro rata share of 100% new common units, subject to dilution and reallocation.

Holders of general unsecured convenience claims will receive payment in full in cash.

Holders of section 510(b) claims and existing interests will not receive any recovery.

The company plans to enter into a $55 million exit senior revolving credit facility with CIT Northbridge Credit LLC as agent and lender. Closing is expected for Aug. 17.

National CineMedia is a Centennial, Colo.-based integrated media company. The company filed bankruptcy on April 11 under Chapter 11 case number 23-90291.

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