National CineMedia Inc., the biggest movie-theater advertising business in North America, said on Tuesday it filed for bankruptcy protection and had entered into a restructuring agreement with its lenders, Reuters reported. This adds to the growing list of challenges facing the cinema industry, which has been hit hard by the pandemic and a lack of major film releases, and follows a similar move by Cineworld, which filed for U.S. bankruptcy protection in September. In an effort to de-leverage its balance sheet, NCM said it entered into an agreement with its secured lenders to convert its debt into equity. The company will receive an ownership interest of about 14% in the restructured entity, it said. Despite some progress in post-pandemic recovery, industry executives have cautioned that the sector is still a long way from returning to its pre-pandemic heights, with theaters and studios facing significant disruptions in production and attendance.
