The US Bankruptcy Court gave an order to Cineworld Group plc. to obtain DIP financing on an interim basis on September 8, 2022. As per the order, the debtor has been authorized to obtain a term loan facility in the amount of $1.935 billion consisting of $664 million which the borrower shall be permitted to draw, $1.0 billion which shall be used to refinance in full the outstanding principal amount of the prepetition priming loans and $271 million which shall be used by assignco to purchase from the row lenders the outstanding principal amount of the row loans, upon entry of the Interim Order, authorizing the Debtors to borrow up to $1.79 billion of DIP Loans consisting of $514 million of working capital loans, $1 million of which shall be used to consummate the Priming Loan Refinancing and $271 million of which shall be used to effectuate the RoW Loan transaction from DIP lenders with Barclays Bank plc acting as the administrative agent.

The DIP loan would either carry an interest rate of 1-month SOFR (plus a SOFR adjustment of 0.10%) plus 10.00%, subject to a SOFR floor of 1.00%, payable monthly in arrears, along with an additional 2% p.a. interest in the event of default. As per the terms of the DIP agreement, the loan carries a backstop commitment fee of 4% p.a., extension fee of 1% of principal amount of DIP and an exit fee of 1% on the aggregate original principal amount of DIP commitments. The DIP facility would mature either on the earliest of the date falling 12 months after the commencement of the chapter 11 cases, subject to no more than 31 months extensions at the sole discretion of the majority lenders or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier.

Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out towards unpaid fees of trustee in the amount of $0.15 million and unpaid professional fees / administrative expenses in the amont of $12 million and first priority lien upon and security interest in the debtor's collateral. The final hearing is scheduled for October 31, 2022. The proceeds of the DIP financing would be used to repay the prepetition priming loans and other obligations under the prepetition priming credit agreement, and consummate the RoW Loan Transaction; provide for the ongoing working capital and capital expenditure needs of the debtors during the pendency of the chapter 11 cases; fund the First Lien Adequate Protection and fund the costs of the administration of the Chapter 11 Cases.