National CineMedia’s disclosure statement conditionally approved

By Sarah Lizee

Olympia, Wash., May 10 – National CineMedia, LLC received conditional approval of the disclosure statement for its Chapter 11 plan, according to a minute entry filed Wednesday 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 official committee of unsecured creditors filed an objection to the plan on Tuesday.

A redlined version of the disclosure statement filed Wednesday shows a new section that clarifies the committee’s stance that it does not support the plan, which proposes a $250,000 cash distribution to holders of general unsecured claims. Holders are expected to see a recovery of 0.03%. The projected amount of general unsecured claims is $729.8 million.

As before, holders of 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. The projected recovery for the allowed amount of secured debt claims is 86.8%.

The combined hearing on final approval of the disclosure statement and confirmation of the Chapter 11 plan is scheduled for June 26.

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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