Cineworld Nears New Ad Deal That May Spurn National CineMedia

A new in-theater advertising deal is in the works for Cineworld Group, according to a lawyer for the cinema operator.

Cineworld is in talks with multiple theater advertisers on a deal and National CineMedia's current offer isn't the best on the table. He claimed that a new deal could save Cineworld $50 million.

There is a new arrangement that needs to be moved forward. We are going to do that right away.

Cineworld is one of National CineMedia's three core customers. According to a lawyer for the company, National CineMedia may argue that Cineworld can't pick a different partner under the terms of the existing deal.

Sale Process

Cineworld has begun a sale process and is in talks with a key lender group about exiting their debts. He said that the theater operator's restructuring will begin moving quickly.

A lawyer for the group that holds $6 billion of Cineworld debt said in the hearing that confidentiality agreements had been signed recently. There is no final decision on whether the company will be taken over by the lender or sold to a third party.

The lawyer said that the pace of play would be quicker. The company cannot stay in Chapter 11 for a long time.

The Cineworld Group has filed for Chapter 11 in the US Bankruptcy Court in Houston.