National CineMedia, Inc. (NCMI): going-concern / distress — NCM LLC files Chapter 11 with prearranged debt-to-equity restructuring; Q4 rev up 44%

On April 11, 2023, National CineMedia, LLC (“NCM LLC”), 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”).

Based on preliminary unaudited Q4 2022 results, NCM Inc. expects to report total revenue growth of 44.4% to $91.7 million

On April 11, 2023, NCM, Inc. entered into a restructuring support agreement (the “Restructuring Support Agreement”) with NCM LLC and certain holders (the “Consenting Creditors”) of (A) revolving and term loan claims under (i) that certain Credit Agreement, dated as of June 20, 2018 among NCM, LLC as Borrower, JPMorgan Chase Bank, N.A. (“JPM”) in its capacity as administrative agent, and the lenders party thereto (as amended, supplemented or otherwise modified from time to time, the “2018 Credit Agreement”); and (ii) that certain Revolving Credit Agreement dated as of January 5, 2022 among NCM, LLC as Borrower, JPM in its capacity as administrative agent, and the lenders party thereto (as amended, supplemented or otherwise modified from time to time, the “2022 Revolving Credit Agreement”), (B) 5.875% Senior Secured Notes due 2028 (the “Secured Notes”) issued by NCM, LLC pursuant to that certain Indenture dated as of October 8, 2019 and Computershare Trust Company, National Association (