Cineworld mulls filing for bankruptcy in the United States

Reading Time: < 1 minute

Aug 22 (Reuters) – Britain’s Cineworld  said on Monday it was considering options including a possible bankruptcy filing in the United States as the world’s second-largest cinema chain operator struggles with near term liquidity.

“Cineworld would expect to maintain its operations in the ordinary course until and following any filing,” it said in a statement.

Shares of the London-listed company plunged to a record low on Friday after a Wall Street Journal report said it was preparing to file for bankruptcy in the United States and Britain.

Cineworld said on Wednesday said it was looking at various options to obtain liquidity and potentially restructure its debt-ladden balance sheet through a deleveraging transaction, which would lead to very significant dilution of existing equity interests in Cineworld.

The Brentford-based company, founded by Steve Wiener in 1995, said it was in talks with many of its major stakeholders including lenders and legal and financial advisers.

Currently, Cineworld and Regal theatres globally are open for business as usual, the company added.

Reporting by Yadarisa Shabong in Bengaluru; Editing by Anil D’Silva and Edmund Blair

Once you're here...

%d bloggers like this: