Cineworld Group Plc, Re [2023] EWHC 3006 (Ch) (31 July 2023)

Cineworld Group Plc, Re [2023] EWHC 3006 (Ch) (31 July 2023)

The statutory requirements for an administration order under the Insolvency Act 1986 are satisfied: Cineworld Group plc is or is likely to become unable to pay its debts, and administration is reasonably likely to achieve a better result for creditors than liquidation. The Plan has overwhelming creditor support and has been scrutinised by the US Bankruptcy Court. The Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021 do not apply or are satisfied by the structure involving NewCo 2. The court exercises its discretion to make the administration order.

Citation
[2023] EWHC 3006 (Ch)
Parties
Applicant: Cineworld Group plc; Applicant: Company's Directors; Respondent: Respondents
Jurisdiction
England and Wales
Judgment Date
31 July 2023
Procedural Posture
Insolvency Administration Application / Judgment on Application for Administration Order
Outcome
Administration order granted
Legal Topics
Administration Order, Jurisdiction Under Insolvency Act 1986, Purpose of Administration, Debt Restructuring, Cross Border Insolvency
Insolvency Corporate Law Administration Order Jurisdiction Under Insolvency Act 1986 Purpose of Administration Debt Restructuring Cross Border Insolvency

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Parties

Cineworld Group plc

Applicant

Company's Directors

Applicant

Respondents

Respondent

Procedural Posture

Insolvency Administration Application / Judgment on Application for Administration Order

Legal Issues

  1. 1 Whether the statutory requirements for making an administration order under the Insolvency Act 1986 are satisfied
  2. 2 Whether the administration order is reasonably likely to achieve the purpose of administration
  3. 3 Whether the Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021 apply

Ratio Decidendi

The statutory requirements for an administration order under the Insolvency Act 1986 are satisfied: Cineworld Group plc is or is likely to become unable to pay its debts, and administration is reasonably likely to achieve a better result for creditors than liquidation. The Plan has overwhelming creditor support and has been scrutinised by the US Bankruptcy Court. The Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021 do not apply or are satisfied by the structure involving NewCo 2. The court exercises its discretion to make the administration order.

Court Disposition

Administration order granted

Orders

  • Administration order made in the form of the draft put before the court
  • Abridgment of time for filing evidence granted