Latham & Watkins has advised the ad hoc committee of senior secured lenders of the Vue International group, the largest privately held cinema group in Europe, on the successful completion of its comprehensive financial recapitalization.
The transaction, which places Vue on a strong footing to facilitate turnaround, recovery and sustainable growth, was finalized on January 26, 2023. As a result of the transaction, Vue will have a materially de-levered and strengthened balance sheet and liquidity position, with total existing debt reduced by approximately £470 million and a significant capital injection of £75 million.
The recapitalization involved an English scheme of arrangement (which was eventually discontinued when all lenders consented to the transaction) and the amendment and restatement and/or partial equitization of the group’s first lien and second lien senior secured financing arrangements, which resulted in the creditors taking ownership of the entire share capital of the group.
The complex, cross-border transaction was implemented contractually with the full support of all financial creditors, management, and the sponsors. The transaction was also approved by the Italian Prime Minister’s Office in accordance with Italian regulations on foreign direct investment.
The Latham team was led by London finance partners Simon Baskerville and David Wallace, with London finance associates Jack Isaacs, Musonda Mutati, and Jo Fernandes. Advice on corporate and management incentive matters was provided by London partner Huw Thomas with London associates Alice Drayton and Adam Ray; on banking matters by London partner Ross Pooley, Milan partner Marcello Bragliani, and Frankfurt partner Christian Jahn, with London associates Tracy Liu, Felix Buddee, and Christina Nasioutzik, Milan associates Davide Camasi and Nicola Dall'Acqua, and Munich associates Philipp Guggeis, Anne Kurschewitz, and Julia Erhard; on US securities matters by Paris partner Roberto Luis Reyes Gaskin with London associate Laurie Tomassian; on tax matters by New York partner Jiyeon Lee-Lim and London partner Karl Mah with London associates Lina Le Roux and Abi Jacobs, New York associate Michael Yu, and Washington D.C. associate Emmanuel Eni Kassim; and on competition and regulatory matters by London partners Jonathan Parker and Greg Bonné, Italian counsel Cesare Milani, London associate James Mathieson and Milan associate Edoardo Cassinelli.