Cineworld and In-Theater Advertiser Strike Long-Awaited Deal

Cineworld Group Plc, the parent company of Regal Cinemas, reached a long-awaited deal with its in-theater advertiser, resolving a snag that has been preventing the cinema chain from exiting bankruptcy.

The deal gives National CineMedia, the movie chain’s in-theater advertiser, exclusive rights to more than 450 Regal Cinemas theaters, according to a statement. The agreement will last for a decade and is subject to approval by bankruptcy court.

Negotiations between the two parties dragged for months, and ultimately stood in the way of Cineworld’s exit from bankruptcy. Meanwhile, the movie advertiser’s future was at stake, as the theater chain’s contract comprised a large portion of its business. Cineworld filed for Chapter 11 last September.

The cinema chain and in-theater advertiser had been fighting for months about whether Regal Cinemas had the right to abandon its long-standing advertising contract with National CineMedia.

The adversary proceeding is National CineMedia LLC v. Regal Cinemas, Inc., 22-03307, U.S. Bankruptcy Court for Southern District of Texas.

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Jeremy Hill

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