The industry leader has reached an agreement with key stakeholders and expects the process to move forward quickly with positive results for the company.
VIP Cinema Seating announced today that it has reached an agreement with all key stakeholders on a restructuring plan to strengthen the organization’s balance sheet and gain financial flexibility and resources to drive investment in its key growth strategies. To facilitate this plan, VIP has filed voluntary petitions for relief under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware in Wilmington, DE. By eliminating $178M of long term debt and receiving $20M in new capital, VIP is expected to emerge from the process as a stronger and more sustainable business that is better positioned to compete. All the original lenders and the majority private equity sponsor, HIG Capital, participated in the restructuring and remain backing the company. VIP also received approval on February 19th for all of its first day motions from the Court, including the authority to pay more than $2 million to its vendors on account of their prefiling claims, to continue to pay wages and benefits in the ordinary course and for the continuation of all of its existing programs to support its customers. The Court has scheduled a hearing on VIP’s Plan to emerge from Chapter 11 at the end of March, and VIP believes it should be able to emerge from the process by Mid-April.
“This is a positive and exciting time for VIP Cinema Seating, and we expect to move through the restructure in 45-60 days with no disruption to the business, our employees, customers, vendors, or other business partners,” says Michael Blatz, CEO. “New innovations will be launching throughout the year, starting with our breakthrough non-recliner chair introduction at CinemaCon. We will continue to provide our customers with the same high quality goods and services while investing in product development, customer experience, marketing, sales operations, and finance teams.”
Also, according to Blatz, the company has established a significant and growing presence in Europe and the Middle East regions, which positions the organization for increased brand awareness and growth outside of the U.S.
“There are tremendous opportunities ahead for VIP and this restructuring will allow us to invest in the brand and our products that will help our partners maximize their profits,” says Blatz. “We are excited to have this support, which further strengthens the company and our commitment to radically enhancing the customer experience.”
About VIP Cinema Seating
With over 1,000,000 seats installed across the globe, VIP Cinema Seating is the leading manufacturer of luxury cinema seating in the world today. The company manufacturers in five state-of-the-art facilities in New Albany, Mississippi (US) that total over 900,000 square feet and can produce over 1,000 seats a day. The facilities run multiple vertical production cells using calibrated computer technology for guaranteed to-spec accuracy. Plus, they are designed with product and parts inventory capacity as well as build-to-order flexibility, allowing VIP to efficiently and consistently serve its partners.
VIP’s expert in-house sales team provides a consultative style partnership that is focused on providing high-performance custom solutions for every type of auditorium, including those with sloped floors, limited space issues, and remote access. With dedicated sales teams based in the U.S., the U.K. and Dubai, VIP Cinema Seating is able to service partners across the United States and the EMEA.
For more information, please visit www.vipcinemaseating.com