DJ Luxury Cinema Operator IPic Entertainment Files For Chapter 11 Bankruptcy To Restructure Debt -- MarketWatch

Ipic Entertainment Inc. (IPIC) said Monday it has filed for chapter 11 bankruptcy and is talks with numerous parties on restructuring its debt. The luxury cinema chain operator said it will use the bankruptcy filing to either sell itself or reorganize to emerge with a healthy balance sheet and new capital structure. "The financial restructuring will allow the Company to further improve and enhance its theaters and dining experiences, continue to provide an unparalleled guest experience that is evidenced by the over 2 million IPIC ACCESS loyalty members, and continue with its expansion plans," the company said in a statement. In late July, the company said it had missed an interest payment on a loan and cautioned investors that it may have to file for bankruptcy. The company has $204 million of debt in form of a loan from the Teachers' Retirement System of Alabama (RSA), the pension fund for teachers in that state. It was unable to make a $10 million interest payment on that borrowing due July 1. The company has a debtor-in-possession loan to fund operations during the bankruptcy proceedings provided by the RSA. It expects the restructuring process to last 90 to 120 days. Shares slid 29% premarket and are down 47% in 2019, while the S&P 500 has gained 17%.

-Ciara Linnane

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August 05, 2019 07:11 ET (11:11 GMT)

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