National CineMedia (NCMI) Files Voluntary Chapter 11

Chapter 11 Filing
On April 11, 2023, National CineMedia (NASDAQ: NCMI), the operating company for National CineMedia Inc., (“NCM, Inc.” or the “Company”), filed a voluntary petition for reorganization (the “Chapter 11 Case”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) seeking relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”).
The Company will continue to manage NCM LLC while it is a “debtor in possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. In March 2023, because of potential conflicts that may arise between NCM LLC and NCM, Inc., NCM, Inc. appointed Carol Flaton of Hamlin Partners LLC as an independent manager at NCM LLC to address these conflict matters.
In general, as a debtor in possession under the Bankruptcy Code, NCM LLC is authorized to continue to operate as an ongoing business, but may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. To ensure its ability to continue operating in the ordinary course of business, NCM LLC has filed with the Bankruptcy Court a variety of motions seeking “first day” relief, including requesting authority to pay employee wages and provide employee benefits (including with respect to certain employees at NCM, Inc.), and to pay certain vendors and suppliers, and for approval of the use of cash collateral. Existing customer and vendor contracts are expected to remain in place and be serviced in the ordinary course of business.

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