MN Theaters 2006 LLC filed a motion on July 22 in the U.S. Bankruptcy Court for the Southern District of Florida asking Judge Laurel M. Isicoff to order the appointment of an official committee of unsecured creditors—a step not typically taken in small business bankruptcy cases but which the landlord argues is necessary given the size and complexity of Cinemex's operations.
"Looming over all other considerations, Cinemex is an edge-case subchapter V debtor," MN Theaters stated in its motion. The landlord noted that Cinemex owns 28 multiplex theaters across the country and is owned by a conglomerate that has "previously marketed itself as the sixth largest cinema chain in the world."
Cinemex Holdings USA, Inc., along with subsidiaries CMX Cinemas, LLC and CB Theater Experience LLC, filed for Chapter 11 protection under Subchapter V on July 14, 2025, claiming approximately $1.9 million in qualifying debt—under the $3,024,725 eligibility threshold for small business reorganizations.
This marks Cinemex's second bankruptcy filing in five years. The company previously filed a standard Chapter 11 case in 2020 during the COVID-19 pandemic. In that earlier proceeding, an official committee of unsecured creditors was appointed and ultimately negotiated a reorganization plan that included a $5 million litigation trust for creditors' benefit and a 12% cash payout for certain unsecured creditors.
"Not even two months after the final decree was entered in Cinemex I, the Debtors filed chapter 11 cases once again," MN Theaters noted in its filing. "This time, the Debtors designated the Chapter 11 Cases as cases under subchapter V."
Subchapter V, added to the Bankruptcy Code through the Small Business Reorganization Act of 2019, was designed to make bankruptcy more accessible and less expensive for genuinely small businesses. It eliminates certain creditor protections like the absolute priority rule, which would normally prevent owners from retaining equity unless creditors are paid in full or agree to a different arrangement.
"Congress eliminated many of the Bankruptcy Code's protections for creditors," the motion states. "Most significantly, perhaps, is that Congress eliminated the traditional absolute priority rule." Instead, business owners can retain ownership by committing projected disposable income to creditors for three to five years.
Tarek Kiem was appointed as the Subchapter V trustee on July 2, but MN Theaters argues a trustee alone is insufficient protection for creditors in this case.
"Strong cause exists to constitute an official committee of unsecured creditors in these Chapter 11 Cases," the motion argues, adding that "no single creditor has a large enough claim that it will volunteer to fund a serious investigation of, or serious negotiations with, the equity holders on its own for the benefit of all unsecured creditors."
The motion requests a hearing on July 29, 2025, with an objection deadline of July 28. Under the Subchapter V timeline, the meeting of creditors is scheduled for August 4, with a status conference set for August 22 and a plan proposal deadline of September 29.
MN Theaters is represented by Paul Steven Singerman and Christopher Jarvinen of Berger Singerman LLP in Miami, along with Lisa Laukitis and Benjamin M. Schak of Milbank LLP in New York.
The case is being heard in the U.S. Bankruptcy Court for the Southern District of Florida, Case No. 25-17559-LMI.
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