The world’s second-largest cinema chain said it will apply for administration for the London-listed company in July, which will see shares in the firm suspended thus wiping out its shareholders.

But Cineworld has said the move will not impact any of the 128 cinemas it has in the UK or Ireland.

Cineworld said: “Cineworld continues to operate its global business and cinemas as usual without interruption and this will not be affected by the entry of Cineworld Group plc into administration.

“The group and its brands around the world – including Regal, Cinema City, Picturehouse and Planet – are continuing to welcome customers to cinemas as usual.

“The group continues to honour the terms of all existing customer membership programmes, including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the UK.”

Cineworld in bankruptcy

Cineworld filed for Chapter 11 bankruptcy in the US last year due to its large debts and weaker-than-hoped audience numbers.

The group is moving forward with plans to restructure its roughly $5 billion US dollars (£3.9 billion) debt pile to allow it to exit bankruptcy.

Ilford Recorder: Cineworld filed for bankruptcy last year.Cineworld filed for bankruptcy last year. (Image: PA)

It aims to reduce debts by around $4.53 billion US dollars (£3.6 billion) with a plan to raise $800 million US dollars (£628 million) through a rights offering, while also securing 1.46 billion US dollars (£1.1 billion) of new debt financing.

The restructuring plan is set to wipe out shareholders in the cinema chain in order to support its lenders and creditors.

The company’s shares have already plummeted by almost 99% over the past five years, after being hit hard by the pandemic which forced it to close a number of sites.

In April, the group also scrapped plans to sell its businesses outside the UK, US and Ireland after potential bidders failed to meet the value desired by Cineworld’s lenders.

It hopes to emerge from bankruptcy protection in July after receiving backing for its overhaul from most of its lenders.


Source link

Join the exciting world of cryptocurrency trading with ByBit! As a new trader, you can benefit from a $10 bonus and up to $1,000 in rewards when you register using our referral link. With ByBit’s user-friendly platform and advanced trading tools, you can take advantage of cryptocurrency volatility and potentially make significant profits. Don’t miss this opportunity – sign up now and start trading!