Studio Movie Keeps Theaters Open, Cuts Debt on Bankruptcy Exit

March 26, 2021, 9:58 PM

Studio Movie Grill Holdings LLC is slashing debt and leaving a majority of its dine-in theaters open, under a court-approved bankruptcy plan aimed at a return to profitability.

The Dallas-based chain’s Chapter 11 plan, approved Friday, calls for keeping open about 20 of 33 theater locations and handing equity over to secured lenders led by Goldman Sachs. The plan also cuts more than $100 million of funded debt and infuses the company with $25 million of new liquidity.

The company expects to generate profit once audiences and diners return to theaters following pandemic-related business shutdowns, chief restructuring officer William Snyder ...

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