The world’s second-largest movie theater chain has requested coverage to restructure its debts, but has now secured more.
Cineworld said it planned to exit bankruptcy coverage in July as lenders gave more to the suffering film organization for its restructuring plan.
The update to the world’s second-largest cinema chain, indexed on the London Stock Exchange, came just about nine months after it filed for bankruptcy in the United States. Cineworld suffers from $5 billion (£3 billion) inflated debt and low ratings.
The company, which had sought the hedging order to give itself time to reorganize its debts and assets, said it had reached an agreement with lenders who control almost all of its revolving credit services and 69 percent of its notable debts. That means you can move forward with a restructuring plan and actually make a fresh start later this summer.
On Thursday, the company said Cineworld and its affected subsidiaries are expected to “exit Chapter 11 in July 2023. “
Cineworld, which manages about 750 sites worldwide, showed last month that it had failed in its attempts to sell its U. S. operations. In the US, UK and Ireland after not being able to get the right offers. the sale.
The chain also showed that the restructuring plan would still result in the elimination of all shareholders. Cineworld, whose shares have plunged almost 99% in the last five years, has been hit hard by restrictions similar to the Covid pandemic, which have led to the forced closure of its movie theaters.
Cineworld said its cinemas would continue to operate while it followed its restructuring plan and that the company would honor all existing memberships, adding in its Regal, Cinema City, Picturehouse and Planet theaters.
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