The Wall Street Journal later said Cineworld was preparing to file for bankruptcy protection and start a Chapter 11 proceeding in the U.S., while also considering an insolvency process in the U.K.Ĭhapter 11 bankruptcy protection offers the world’s second-biggest exhibitor a way to continue its operations, while securing capital needed to continue the box office revenue recovery coming out of the COVID pandemic. 17 statement that it was eyeing unspecified strategic options as it was struggling to get through the summer doldrums for Hollywood tentpoles in its theaters. The debt-laden company, led by CEO Moshe “Mooky” Greidinger, had said in an Aug. The cinema powerhouse reiterated that any de-leveraging transaction would result in “very significant dilution of existing equity interests,” meaning shareholdings, adding that “there is no guarantee of any recovery for holders of existing equity interests.” The company does not expect the Chapter 11 filing to result in a suspension of trading in its shares on the London Stock Exchange though. cinema lease terms in an effort to further position the group for long-term growth.” and intends to engage in collaborative discussions with U.S. Overall, it operates 747 sites and 9,139 screens in 10 countries.Īs part of its restructuring, said it would “pursue a real estate optimization strategy in the U.S. The London-headquartered company operates the Regal cinemas in the U.S., as well as Cineworld and Picturehouse venues in the U.K. “Cineworld currently anticipates emerging from Chapter 11 during the first quarter of 2023 and is confident that a comprehensive financial restructuring is in the best interests of the group and its stakeholders, taken as a whole, in the long term.” The filing of a proposed plan of reorganization with the bankruptcy court would happen “in due course,” with the goal to emerge from Chapter 11 “as expeditiously as possible,” the firm said. Box Office Endures Worst September in 26 Years (Excluding 2020)
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