National CineMedia files for Chapter 11, enters restructuring agreement

National CineMedia LLC announced a series of debt restructuring transactions that are expected to strengthen the company’s balance sheet and position the company for long-term growth. National CineMedia, a non-filing entity, will remain the manager of NCM LLC. To facilitate its debt restructuring, the company has filed a voluntary Chapter 11 petition in the United States Bankruptcy Court for the Southern District of Texas and has entered into a comprehensive restructuring support agreement, or RSA, with the support of its secured lenders, through which all of the company’s debt will be converted into equity of the reorganized company. Under the RSA, NCM LLC will assume all of its critical contracts upon emergence. NCM Inc. will receive an ownership interest in the restructured company of approximately 14%. Further, unless an official creditors committee is formed, all holders of general unsecured claims will be paid in full in the ordinary course under the RSA.