Major UK cinema chain SUCCESSFUL in its final bid to try to save dozens of theatres from closure and thousands of staff from being sacked

One of the UK's biggest cinema chains could be back from the brink after a successful restructuring bid in the High Court .

Four companies which form part of troubled cinema operator Cineworld have had plans approved to stave off the threat of administration with a £16million cash injection.

Cine-UK Ltd, Cineworld Cinemas Ltd, Cineworld Cinema Properties Ltd and Cineworld Estates Ltd are parts of the UK arm of the world's second-largest cinema chain but were at risk of entering administration if the restructuring was not approved, the court heard.

The court in London previously heard that the four companies, which run 101 sites and employ 4,401 staff, form part of a wider group which operates cinemas in 10 countries, including the US under the Regal Cinemas brand.

The approval means £16m of new equity funding from the companies' indirect parent firm will be released to fund their immediate financial needs, with further funds of up to £35m also to be made available as the four companies renegotiate the leases of some of their venues.

Mr Justice Miles approved the restructuring on Monday, stating in a written judgment that 'the court should exercise its discretion in favour of sanctioning the plans'.

But their barrister, Tom Smith KC, told the court on Thursday that they are 'presently unprofitable' after being 'severely adversely impacted' by the Covid-19 pandemic and strikes by screen actors and writers last year.

Five of the 101 Cineworld UK sites are now set to close due to being 'commercially unviable'.

Mr Smith said the US arm of the chain had provided the UK firms with around $65m to allow it to keep trading up to the end of June this year, with rent costing £19m also paid for on the condition that the company would undergo a restructuring.

The brand announced in June it would close sites in Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate and Swindon Circus in the event of said plans gaining approval but added the total number of impacted sites could not be confirmed until the restructuring process is complete.

The barrister continued that the US arm had agreed to pay £16.7m in rent due for the three months since then as there was 'no prospect of raising the money from anywhere else'.

Mr Justice Miles also dismissed a bid by the landlords of four sites, the Crown Estate and UK Commercial Property (UKCP), to get an injunction blocking the companies from renegotiating the leases of the sites.

The two bodies said that agreements last year prevented the leases from being renegotiated, with their barrister Ben Shaw KC claiming the restructuring would bring 'adverse consequences'.

In a 31-page judgment, Mr Justice Miles said that while the landlords 'may well feel aggrieved' about the restructure, the renegotiations last year 'did not achieve what was needed to stave off the cashflow shortfall these companies now face' and that they 'now face imminent administration, absent the plans'.

But the judge also gave UKCP the green light to appeal against his ruling, stating that the case involved 'novel points of legal principle' and that there 'is a realistic prospect of an appeal on them succeeding'.

Following the ruling, a Cineworld spokesperson said: 'We are pleased that the court has approved our restructuring plan.

'This will enable us to re-set the business for the long-term and ensure a sustainable future for Cineworld in the UK.'