C is for Cineworld, Circularity and Christopher Kane, Administrations All

Posted on Jun 27, 2023. by NTI

There had to be a benefit to Neil's globetrotting with the World Bank setting up insolvency practitioner training and licencing regimes. At least we know what a 'Chapter 11' really is, and what happens when you exit it. In the United States Chapter 11 is usually referred to as a 'reorganization bankruptcy' for a company. Unlike a British Administration, the debtor remains 'in possession' and has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money.

That is what Cineworld have been doing since September 2022 and is now set to be exiting the process. This means that, after settlement of proceedings, the company will officially be permitted by law to start executing a confirmed Plan of Reorganization and begin to implement its restructuring efforts. It had to do so (and is now about to enter an Administration in England & Wales) as it is sitting proudly atop a £3.9 billion debt pile.

Cineworld has said that said it plans to appoint Administrators over here (as yet unidentified ... but some of you know who you are. Go on - let us in the NTI newsroom know ...), and then transfer its assets from Cineworld Group PLC to its wholly owned subsidiary, Crown UK Holdco Limited, a newly incorporated company to be controlled by the group's lenders. This is a good thing, unless you happen to be a lender, as restructuring of the company's finances will see its debts cut by about $4.5 billion. A sale of rights in the business has raised $800 million and it will also have access to a further $1.46 billion in funds if required ... but screens will remain lit for Indianna, Tom, Superman and the Little Mermaid. So we have a sense of perspective.

Somewhat further down the foodchain Scotland's bottle deposit-return scheme, to be managed by Circularity Scotland Limited, is in an Administration tizz. NTI's old friends Blair Nimmo and Alistair McAlinden of Interpath Advisory have been appointed Joint Administrators following the scheme being delayed until at least October 2025 after the UK Government declined a request for full exclusion from the Internal Market Act, which meant the scheme must exclude glass. It is a little controversial as the UK Government blame the Scottish Government for the delay and all of the latter are currently helping the police with their enquiries.

Maintaining our 'C is for Administration' theme this morning, and staying in Scotland, Christopher Kane, a Scottish fashion brand (yes, you read that correctly) has filed a notice of intention to appointMarco and his team at FTS Recovery as Administrators. Now the fun stuff begins with all of the marketing activity.

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