Cineworld Bankruptcy Judge Dangles 20% Yield on Fresh Cash
- Lenders agree to tweak financing package at judge’s request
- Creditors involved include Blackstone, Cyrus and Credit Suisse
A pedestrian passes a Cineworld Group Plc cinema in Leicester Square in London.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
A federal judge offered a guaranteed yield of more than 20% to lenders willing to advance more cash to now-bankrupt Cineworld Group Plc.
US Bankruptcy Judge Marvin Isgur dangled the yield in the theater chain’s first Chapter 11 hearing Thursday after insisting on major revisions to a crucial bankruptcy financing package. He took issue with the original $1.94 billion loan proposal because it would have mostly been used to repay old debt.