© Reuters. FILE PHOTO: A Cineworld cinema near Manchester, Britain, October 4, 2020. REUTERS/Phil Noble/File Photo
(Reuters) – Cineworld Group said on Thursday Eduardo Acuna, who runs the Americas operations of Mexican theatre operator Cinepolis, will become its CEO when the company emerges from bankruptcy proceedings, expected this month.
The group, which filed for U.S. bankruptcy protection in September, said lenders had agreed to appoint Acuna as CEO of the newly formed parent company after its restructuring plan becomes effective.
Shares in London-listed Cineworld were trading up 11% at 0.4 pence by 1145 GMT, but remain more than 99% below their all-time high of 310.7 pence hit in 2017.
The world’s second-largest movie theatre chain operator appointed former Pepsi executive Eric Foss as its new chairman in late June, after filing for administration in Britain as part of a restructuring plan to reduce its massive debt.
The plan, which was also approved in the U.S., involves the release of about $4.53 billion of the group’s debt, a rights offering to raise gross proceeds of $800 million and a provision of $1.46 billion in new debt financing.
Acuna will replace Mooky Greidinger, who has held the top role since 2014 when the group completed its combination with Cinema City International.
Over the years, Greidinger has grown Cineworld through several acquisitions, including the $3.6 billion purchase of Regal Entertainment in 2017. That however saddled the company with huge debts.
Greidinger and his top management team will be paid up to a combined $35 million to leave the British cinema operator after it emerges from Chapter 11 proceedings, the Financial Times reported last month.
Cineworld had faced discontent from shareholders over executive pay in 2021, including bonuses to the CEO and his brother and deputy chief Israel Greidinger.
Acuna, who has been with Cinepolis since 2005, previously held roles at McKinsey and Co and Goldman Sachs (NYSE:).
The executive will be tasked with running the newly incorporated group, which like others in the industry faces broad changes in the way audiences view movies as online streaming became more popular.
Cineworld added that it “understands that a selection process for the remaining members of the new company’s board is ongoing”.
