CMX Cinemas Confirms Subchapter V Plan, Beats Landlord's $3.4M Debt-Cap Challenge

CMX Cinemas, an operator of 28 premium dine-in theaters, emerged from its second chapter 11 case with existing equity intact after Judge Laurel M. Isicoff confirmed its Subchapter V plan on November 17, 2025, projecting 100% recovery for unsecured creditors through semi-annual distributions from disposable income over three years. The confirmation followed Judge Isicoff's November 12, 2025 denial of an eligibility challenge from landlord MN Theaters, which argued CMX's qualifying debt exceeded the $3.4 million Subchapter V cap.

CMX filed for Subchapter V protection on June 30, 2025, returning to bankruptcy court four and a half years after emerging from its COVID-era chapter 11 with modified landlord leases. The chain operates 311 screens across eight states with approximately 1,400 employees and is backed by Mexican parent Cinemex—a cinema chain ultimately controlled by mining conglomerate Grupo México and billionaire Germán Larrea.

Debtor(s)	Cinemex Holdings USA, Inc.; CMX Cinemas, LLC; CB Theater Experience LLC
Court	U.S. Bankruptcy Court, Southern District of Florida
Judge	Hon. Laurel M. Isicoff
Case Number	25-17559 (lead case)
Parent Company	Cinemex (Mexico)
Ultimate Owner	Grupo México (Germán Larrea)
Petition Date	June 30, 2025
Confirmation Date	November 17, 2025
Effective Date	December 1, 2025
Theaters	28 locations
Screens	311
Employees	~1,400
Prior Bankruptcy	April 25, 2020 (COVID); emerged December 2020
Class 3 Unsecured Recovery	~100% (projected)

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Cinemex Ownership and U.S. Market Entry

CMX Cinemas traces its origins to Cinemex, a Mexican cinema chain founded in 1993 that pioneered multiplex theater formats in Mexico City. The chain operates 301 multiplex theaters with 2,625 screens across 104 cities in Mexico. Grupo México—Mexico's largest mining company, controlled by Germán Larrea—acquired Cinemex from AMC Entertainment for $311 million in November 2008, adding theatrical exhibition to a conglomerate whose primary holdings span copper mining, railway transport through Ferromex, and infrastructure.

U.S. market entry. CMX Cinemas opened its first U.S. flagship theater in April 2017 at the Brickell City Centre in Miami, Florida, combining dining and beverage service with theatrical exhibition, VIP amenities, in-seat dining service, and adult-only evening showings. The company later added CMX Market, a middle-tier fast-casual format, and CMX CinéBistro, a VIP format with in-seat table service, a dinner menu, and a cocktail program.

Cobb Theatres acquisition. Six months after opening its Miami flagship, CMX announced in October 2017 the acquisition of Cobb Theatres, a 287-screen, 25-location chain spanning ten states in the Southeast and Midwest. The acquisition closed on December 11, 2017, making CMX the eighth largest movie theater chain in the United States. Post-acquisition, the combined entity operated 30 sites across 10 states with 342 screens and 2,030 employees. Cobb had introduced the CinéBistro concept in Miami and Tampa in 2008, giving CMX both a multi-state footprint and the CinéBistro brand.

2020 Chapter 11 and COVID-19 Restructuring

The COVID-19 pandemic forced government-mandated cinema closures nationwide beginning in March 2020. CMX's premium dine-in model depended on per-capita spending to support staffing, kitchen operations, and lease rates in retail locations; when theaters closed, revenue declined while fixed lease obligations continued accruing.

April 2020 filing. CMX filed for chapter 11 on April 25, 2020, citing the pandemic's impact on operations. At filing, the company faced approximately $3.2 million in monthly rent obligations plus an additional $700,000 in taxes and insurance payments—nearly $4 million in monthly fixed costs with zero revenue. The 2020 bankruptcy encompassed a larger footprint than the 2025 filing: 41 movie theaters across 12 states with lease obligations covering upscale dine-in premises.

Workforce reductions. CMX laid off virtually its entire workforce, reducing approximately 2,500 employees to approximately 30, with the small remaining staff handling essential administrative functions while all 41 theaters closed. Some locations remained closed for extended periods even after restrictions eased—one Minnesota theater stayed shuttered for 18 months.

December 2020 emergence. After six months of creditor negotiations, CMX emerged from bankruptcy in December 2020 under modified landlord relationships. Landlords agreed to revenue-share leases under which they would receive a portion of theater profits rather than fixed rent payments. The asset sale to Wine & Roses, S.A. de C.V.—then a parent company affiliate—funded a reorganization plan providing approximately 15% recovery for general unsecured creditors.

The 2020 confirmed plan also issued a Theater Level Cash Flow Note (TLCF Note) to the Cinemex GUC Claims Trust. The Trust later sued the reorganized debtors for breach of contract, alleging they failed to honor the note's terms; the Bankruptcy Court dismissed that complaint on June 23, 2025, days before the second bankruptcy filing.

Streaming Disruption and Renewed Distress

CMX's emergence from the 2020 bankruptcy did not end the pressures described in the First Day Declaration. When theaters reopened in February 2021, industry conditions had changed. The First Day Declaration states that Cinemex had positioned itself in the dining theater niche to compete against streaming platforms, arguing that theaters offering only snacks and beverages would struggle against lower-cost in-home viewing; most CMX locations occupy space within shopping malls, with only nine in standalone buildings.

Streaming platform disruption. The First Day Declaration identifies the growth of streaming platforms as a primary cause of renewed distress. During the pandemic, studios pivoted toward streaming-first or simultaneous release strategies, triggering streaming subscription growth that doubled to approximately $1.8 billion worldwide—and approximately $340 million in the U.S. market—between 2019 and 2025. Consumers grew accustomed to watching new releases at home, and the habit persisted after theaters reopened.

Attendance, box office, and screen closures. Domestic cinema attendance remains at just 64% of pre-pandemic levels according to 2025 industry surveys, with 2025 tracking near 2024's performance and projected to fall far short of the $9 billion in domestic ticket sales that industry analysts had expected. The domestic box office reached $8.7 billion in 2024, down 3.3% from 2023's $9.04 billion and down 23.5% from 2019's $11.3 billion; admissions fell to approximately 800 million from pre-COVID heights of roughly 1.3 billion. The 2024 softness reflected lingering effects of the 2023 actors and writers strikes, which halted major productions and reduced the 2024-2025 release slate. Approximately 5,700 movie screens have shut down since COVID as operators close underperforming locations. The consolidation has been uneven: premium large-format screens have performed relatively well, with IMAX delivering a record $1.2 billion global box office in 2025, while standard screens have seen more closures. Studios now treat streaming platforms as primary distribution channels for much of their content, and theatrical windows have compressed from months to weeks.

Lease burden. CMX's lease obligations were negotiated almost fifteen years ago under different market conditions. According to the First Day Declaration, Cinemex spent approximately 22.6% of annual revenues on lease-related expenses in fiscal year 2024. The company generated gross revenues of approximately $489 million between 2021 and 2024 but incurred costs and expenses exceeding $517 million, producing approximately $28 million in negative EBITDA over that period. Parent company Wine & Roses funded the shortfall through intercompany loans, leaving the debtors with approximately $50 million in intercompany debt at filing.

Reduced footprint. The CMX that filed in July 2025 was smaller than the company that emerged from its first bankruptcy. From 41 theaters across 12 states in 2020, the company had contracted to 28 theaters across 8 states—shedding roughly one-third of its locations while retaining approximately 1,400 employees.

Financial Position at the 2025 Filing

The three debtors filed schedules showing assets between $50 million and $100 million individually, with aggregate consolidated assets of approximately $125 million—about $123 million in theater leases, equipment, and intangibles, and roughly $1 million in current assets. Liabilities were listed at $1 million to $10 million per debtor, translating to approximately $15 million in external liabilities on a consolidated basis, though this figure excluded approximately $50 million in intercompany debt owed to parent Wine & Roses.

2024 financial performance. For the year ending December 31, 2024, CMX generated approximately $129 million in consolidated gross revenues: $64 million in box office ticket sales, $60 million in food and beverage sales, and $5 million from other sources including on-screen advertising. Total expenses reached approximately $133 million, producing a net loss of approximately $4 million before administration and marketing costs totaling $8.2 million.

First half 2025. Through June 30, 2025, the company generated gross revenues of approximately $61 million: $30 million in ticket sales, $28 million in food and beverage, and $3 million from other sources. Monthly expenditures exceeded $62 million, including film licensing fees, food and beverage costs, lease payments, and payroll.

Secured debt. The primary secured claim consists of a promissory note reflecting loans from parent Wine & Roses, with asserted collateral encompassing substantially all debtor assets valued at approximately $124 million. Three landlords—Old Orchard Urban Limited Partnership, Southgate Mall Owner LLC, and Countryside Mall, LLC—had filed UCC-1 financing statements granting rights to tangible personal property within their leased premises upon lease termination.

MN Theaters Eligibility Fight and $4.4 Million Claim Settlement

CMX's decision to proceed under Subchapter V—the streamlined small business reorganization procedures added to the Bankruptcy Code in 2019—became a contested issue. Subchapter V requires that qualifying debt not exceed approximately $3.4 million at filing.

MN Theaters' challenge. On September 3, 2025, landlord MN Theaters 2006 LLC filed an Eligibility Objection arguing that CMX's qualifying debts actually exceeded the statutory cap when properly calculated. MN Theaters—represented by Berger Singerman LLP and Milbank LLP—contended that the debtors were "big business" improperly using small business procedures designed for genuinely small enterprises.

Disputed debt categories. The eligibility fight centered on whether various debt categories should be classified as qualifying or non-qualifying (contingent/unliquidated):

Category	Amount Claimed by MN Theaters
Scheduled Qualifying Debt	$2,058,776.29
Film Distribution Obligations	$690,511.64
Payroll (Pre-Petition Work)	$788,571.58
Paid Time Off (PTO)	$404,231.40
Sales Tax	$1,036,929.97
Insurance Premium (Omitted)	$56,128.61

MN Theaters argued that when these categories were properly included, total qualifying debt exceeded the $3,424,000 cap—disqualifying CMX from Subchapter V and requiring a traditional chapter 11 process with a creditors' committee and disclosure statement.

November 12 ruling. After briefing and a contested hearing, Judge Isicoff denied MN Theaters' eligibility objection on November 12, 2025, ruling that the debtors properly classified certain debts as non-qualifying. The ruling cleared the path for confirmation under Subchapter V procedures.

Claim dispute, discovery, and settlement. Separately from the eligibility challenge, CMX objected to MN Theaters' $12,630,892.56 proof of claim related to lease obligations, proposing a maximum allowable amount of $2,922,017.42. The reorganized debtors then moved to compel discovery from MN Theaters on December 16, 2025, stating that MN Theaters had produced only 27 documents and seeking historical lease and maintenance records to test what the motion called shifting and inconsistent damage calculations. The parties ultimately settled: a settlement motion filed March 11, 2026 allowed MN Theaters a $4.4 million Class 3 general unsecured claim, payable through the plan's ratable distributions, with MN Theaters waiving further lease-related rejection damages and related claims. The court approved the settlement on April 3, 2026, landing between the debtors' proposed $2.9 million cap and MN Theaters' original $12.6 million claim.

Plan, Confirmation, and Professional Retentions

CMX filed its initial Subchapter V plan on August 28, 2025, followed by an Amended Plan on September 5, 2025, proposing a going-concern reorganization that would preserve existing operations, assume modified leases, and distribute projected disposable income to creditors over three years.

Creditor treatment and distribution schedule.

Class	Description	Status	Treatment	Recovery
Administrative	Professional fees, administrative expenses	Unimpaired	Paid in full in cash on Effective Date	100%
Priority Tax	Outstanding tax obligations	Unimpaired	Paid in full over 3 years with interest	100%
Class 1	Priority Claims (§ 507(a))	Unimpaired	Paid in full in cash	100%
Class 2	Secured Claims (excl. Wine & Roses)	Unimpaired	Reinstated, paid in full, or indubitable equivalent	100%
Class 3	General Unsecured Claims	Impaired	Pro rata distributions from disposable income	~100%
Class 4	Wine & Roses Claim	Impaired	Subordinated; no distribution until Class 3 paid	0% initially
Class 5	Equity/Membership Interests	Unimpaired	Reinstated and preserved	N/A

The Amended Plan projected approximately 100% recovery for Class 3 general unsecured creditors against an estimated non-contingent, liquidated unsecured claims pool of approximately $1.9 million. Wine & Roses' intercompany claims were placed in Class 4 with no distribution until Class 3 received full payment.

Distributions to creditors occur semi-annually from projected disposable income over a three-year commitment period: June 30, 2026; December 31, 2026; June 30, 2027; December 31, 2027; June 30, 2028; and December 31, 2028. Class 5 equity interests were reinstated under the confirmed plan, preserving Cinemex's ownership through Wine & Roses.

Lease treatment. The plan assumed executory contracts and unexpired leases as of the Effective Date, curing defaults and preserving the theater network as a going concern. Landlords asserting rejection damages faced the statutory cap under § 502(b)(6), which limits landlord claims to the greater of one year's rent or 15% of the remaining lease term (not exceeding three years).

Confirmation objections and effective date. MN Theaters 2006 LLC filed a confirmation objection challenging the plan's creditor protections on October 6, 2025, and multiple landlords filed limited objections to plan confirmation on October 7, 2025, including EPR Tuscaloosa, LLC, the Brookfield-affiliated landlords Coastland FS Anchor Parcel LLC and Tysons Galleria Anchor Acquisition LLC, and Benderson Development Group, Hines Global REIT, and NNN REIT, Inc. Separately, the Debtors reached a settlement resolving a lease dispute with Liberty Center LLC; the settlement was approved on November 19, 2025, and Liberty Center subsequently withdrew its proof of claim. The court entered the Confirmation Order on November 17, 2025, approving the plan as a consensual reorganization under § 1191(a) and indicating that the debtors obtained sufficient creditor acceptance to satisfy voting requirements. The plan became effective on December 1, 2025, 14 days later; CMX filed a notice of the effective date and substantial consummation on December 10, 2025. The Subchapter V Trustee filed a Report of No Distribution on December 22, 2025, with creditor payments scheduled to begin under the semi-annual distribution schedule in June 2026.

Key professionals. Quinn Emanuel Urquhart & Sullivan, LLP served as debtors' lead counsel, with Bast Amron LLP as local counsel, GlassRatner Advisory & Capital Group, LLC as financial advisor, and A G Realty Partners as real estate consultant. Omni Agent Solutions, Inc. served as claims and noticing agent, and Tarek Kirk Kiem of Kiem Law, PLLC served as Subchapter V trustee. Berger Singerman LLP and Milbank LLP represented MN Theaters. The court approved final compensation of $883,363 in fees for Quinn Emanuel, $456,810 in fees for Bast Amron, and $223,113.50 in fees for GlassRatner, plus a combined $25,102 in expenses across the three orders -- first and final applications reflecting the streamlined Subchapter V timeline.

Halcyon Lease Marketing and Peachtree Rejection

CMX pruned its lease portfolio on both sides of confirmation. The debtors rejected the CMX Village 14 lease effective July 31, 2025, and the court separately entered an order rejecting the Plaza Cinema Café 12 lease effective June 30, 2025 -- both ahead of the September amended plan.

The confirmation order carved out two leases, with GT RP Halcyon, LLC and Fuqua BCDC Peachtree Corners Project Owner, LLC deferred for later assumption-or-rejection decisions rather than resolved at confirmation. On the Halcyon lease, the reorganized debtors obtained a first extension of the assumption-or-rejection deadline through January 26, 2026, then sought a second extension through February 27, 2026, telling the court they had identified a potential assignee and needed more time to finalize an assignment and continue landlord negotiations. The court granted the second extension on January 26, 2026.

The Peachtree lease reached a different outcome. The fourth plan supplement, filed January 21, 2026, gave notice that the reorganized debtors were rejecting the Fuqua BCDC Peachtree Corners lease rather than assuming or assigning it.

Key Timeline

Date	Event
1993	Cinemex founded in Mexico City
November 2008	Grupo México acquires Cinemex for $311 million
April 2017	First CMX flagship opens at Brickell City Centre, Miami
October 2017	CMX announces Cobb Theatres acquisition
December 11, 2017	Cobb Theatres acquisition closes; CMX becomes 8th largest U.S. chain
April 25, 2020	First chapter 11 filed (COVID-19 pandemic)
December 2020	Emerged from first bankruptcy with modified landlord leases
June 23, 2025	Court dismisses TLCF Note breach of contract lawsuit
June 30, 2025	Second chapter 11 petitions filed (Subchapter V)
August 28, 2025	Initial Subchapter V Plan filed
September 3, 2025	MN Theaters files Subchapter V eligibility objection
September 5, 2025	Amended Plan filed
September 12, 2025	Debtors object to MN Theaters' $12.6M claim
October 6, 2025	MN Theaters files full confirmation objection
October 7, 2025	Other landlords file limited confirmation objections
November 12, 2025	MN Theaters eligibility objection denied
November 17, 2025	Confirmation Order entered
November 19, 2025	Liberty Center settlement approved
December 1, 2025	Effective Date
December 10, 2025	Notice of Effective Date and Substantial Consummation filed
December 16, 2025	Debtors move to compel discovery from MN Theaters
December 22, 2025	Subchapter V Trustee's Report of No Distribution
January 21, 2026	Fourth plan supplement notices Peachtree lease rejection
January 26, 2026	Court extends Halcyon lease deadline to February 27, 2026
March 11, 2026	MN Theaters settlement motion filed ($4.4M Class 3 claim)
April 3, 2026	Court approves MN Theaters settlement

Frequently Asked Questions

Why did CMX Cinemas file for bankruptcy again?

CMX filed its second chapter 11 in five years as streaming platforms expanded and domestic theater attendance remained at just 64% of pre-pandemic levels. The 2023 Hollywood strikes reduced the 2024-2025 film slate, lowering attendance. Additionally, lease obligations negotiated fifteen years ago under different market conditions consumed approximately 22.6% of annual revenues.

What is Subchapter V and why did CMX use it?

Subchapter V is a streamlined small business bankruptcy procedure added to the Bankruptcy Code in 2019 that allows debtors with qualifying debt below approximately $3.4 million to reorganize more quickly with lower costs. Subchapter V permits equity retention even when creditors are impaired, allowing CMX's parent company to maintain ownership.

Did the Subchapter V eligibility challenge succeed?

No. Landlord MN Theaters argued that CMX's actual qualifying debt exceeded the statutory cap when properly accounting for film distribution obligations, payroll, PTO liabilities, and sales taxes, but Judge Isicoff rejected the challenge on November 12, 2025, ruling that the debtors properly classified certain debts as non-qualifying contingent or unliquidated obligations. MN Theaters' separate $12.6 million lease-related claim was later resolved by settlement, with the court approving a $4.4 million allowed Class 3 claim on April 3, 2026.

How will creditors recover under the plan?

The plan projects approximately 100% recovery for Class 3 general unsecured creditors through semi-annual distributions from disposable income over three years (2026-2028). Secured creditors are unimpaired. Wine & Roses' intercompany claims are subordinated in Class 4, receiving no distribution until third-party unsecured creditors are paid in full. Equity interests in Class 5 are reinstated.

Who owns CMX Cinemas?

CMX is owned by Cinemex, Mexico's major cinema chain, which is in turn owned by Grupo México—the country's largest mining company—controlled by billionaire Germán Larrea. Grupo México acquired Cinemex from AMC Entertainment for $311 million in 2008. Wine & Roses, S.A. de C.V., a Mexican corporation and Cinemex affiliate, directly holds Cinemex Holdings USA.

Who is the claims agent for CMX Cinemas?

Omni Agent Solutions, Inc. serves as the claims and noticing agent for the Subchapter V case, maintaining the claims register for the Florida proceeding.

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