New boss to head up Cineworld ahead of exit from bankruptcy

Troubled cinema chain Cineworld has said its lenders have appointed Eduardo Acuna as chief executive of the group as it prepares to emerge from bankruptcy.

Mr Acuna will work alongside new chairman Eric Foss as part of an overhauled management team hired by lenders of the group.

Cineworld filed for Chapter 11 bankruptcy in the US last year after being weighed down by its mammoth debts and weaker-than-hoped audience numbers.

It is pressing ahead with plans to restructure its roughly five billion US dollars (£3.8 billion) debt pile to allow it to exit bankruptcy, which is expected later this month.

The world’s second largest cinema group said the search for remaining members of the newly formed board is continuing.

Mr Acuna will replace Mooky Greidinger at the helm of the chain.

Mr Foss said: “I am confident that, under Eduardo’s leadership, Cineworld is well positioned to reach new heights and continue to grow its global business and further enhance its cinemas for guests around the world.”

Mr Acuna said: “I am thrilled to have the opportunity to chart Cineworld’s new course, capitalise on its strong financial position and growth potential, and continue to deliver groundbreaking cinema experiences for our guests.”

Outgoing chief executive Mr Greidinger and his management team are reportedly being handed a combined payout of between 30 million US dollars (£23 million) and 35 million US dollars (£26.8 million) as a so-called “golden goodbye”.

It is understood Mr Greidinger is being retained by the group in a consultancy role for 12 months.

Creditors are set to take control of the company when the bankruptcy wraps up this month, with the new management team overseeing a turnaround as the industry struggles to recover from the pandemic and as cinema-goers instead turn to streaming services.

The Empire Cinemas chain collapsed into administration last week after seeing dwindling numbers of film-goers, with six sites being closed with immediate effect.

Cineworld’s UK operations are also being placed in administration this month as part of its restructuring, which will see shares in the firm suspended.

But it has stressed the move will not affect the British operations for the holding company, with cinemas remaining open as usual.

It has 128 cinemas across the UK and Ireland.

The group, which also owns the Picturehouse brand, is aiming to reduce debts by around 4.53 billion US dollars (£3.5 billion) with a plan to raise 800 million US dollars (£612 million) through a rights offering, while also securing 1.46 billion US dollars (£1.1 billion) of new debt financing.

The restructuring plan is set to wipe out shareholders in the cinema chain in order to support its lenders and creditors.