Cineworld issues update on UK cinema sites after filing for bankruptcy
Cineworld has dropped its plans to sell its UK, Irish, and US businesses and will try and raise new funding to get it out of bankruptcy.
The global cinema chain, whose brands include Regal, Cinema City, Picturehouse and Planet and runs around 750 sites globally, filed for bankruptcy in the US last year.
However, the group announced today that it will try and raise $2.3billion (£1.8billion) in new funding as part of a plan to exit bankruptcy.
Cineworld announced a debt restructuring plan with its lenders which it hopes will reduce its debt pile by $4.5billion.
To do this, the cinema chain will borrow an additional $1.46billion (£1.2 billion) in new credit, and provide $800million (£651 million) of equity to its lenders.
Full list of cinemas at risk in the UK as major chain gives update on its future
The group has over 100 Cineworld sites in the UK and Ireland (Getty Images)Cineworld says it will aim to have the restructure completed during the first half of this year.
When it filed for Bankruptcy in September, Cineworld had debts of around $8.8billion.
In a statement, Mooky Greidinger, chief executive of Cineworld, said: “This agreement with our lenders represents a ‘vote-of-confidence’ in our business and significantly advances Cineworld towards achieving its long-term strategy in a changing entertainment environment.”
"With a growing slate of blockbusters and audiences returning to cinemas in increasing numbers, Cineworld is poised to continue offering moviegoers the most immersive cinema experiences and maintain its position as the ‘best place to watch a movie’."
Earlier this year, Cineworld launched a process to find a potential buyer but after struggling to find an acceptable offer it will now halt the potential sale efforts.
It will however continue with an auction for its operations outside of the UK, Ireland and the US.
This includes its operations in Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel.
Cineworld has confirmed that it will continue to trade as usual during this process.
Alongside other cinema chains, Cineworld was hit hard by the Covid-19 pandemic and the lockdowns which were introduced.
As well as this, Cineworld faced the added pressure of having to compete with streaming services.
Cineworld preparing to 'file for administration' as part of restructuring plan
The cinema chain operates 103 cinemas under the Cineworld brand across the UK and the Republic of Ireland.
Cineworld also has a further 26 cinemas under the Picturehouse brand.
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