Bloomberg Law
Sept. 9, 2022, 4:28 AM

Cineworld Bankruptcy Judge Dangles 20% Yield on Fresh Cash (1)

Jeremy Hill
Jeremy Hill
Bloomberg News

A federal judge offered a guaranteed yield of more than 20% to lenders willing to advance more cash to now-bankrupt Cineworld Group Plc.

US Bankruptcy Judge Marvin Isgur dangled the yield in the theater chain’s first Chapter 11 hearing Thursday after insisting on major revisions to a crucial bankruptcy financing package. He took issue with the original $1.94 billion loan proposal because it would have mostly been used to repay old debt.

But with only $4 million of cash on hand as of Thursday, Cineworld desperately needs more money to stay afloat. Isgur promised investors the juicy return, which ...