Cineworld UK to file for administration as part of restructuring plan
Cineworld will file for administration in the UK as part of a restructuring plan.
The world's second largest cinema chain will apply for administration for its London-listed company in July.
This will see shares in the firm suspended.
However, the cinema chain has stressed that the move will not impact its British operations for the holding company.
This means its cinema chains, whose brands include Regal, Cinema City, and Picturehouse, will continue to remain open and operate as usual.
Full list of cinemas at risk in the UK as major chain gives update on its future
The group is moving forward with plans to restructure its near $5billion (£3.9 billion) debt pile to allow it to exit bankruptcy.
It is also looking to raise $800million (£628million) through a rights offering and secure $1.46billion (£1.1 billion) of new debt financing.
Cineworld filed for Chapter 11 bankruptcy in the US in September last year, however recently reported that it expected to exit the protection this July.
The company said today that it still expects to emerge from Chapter 11 bankruptcy next month.
The company had filed for a bankruptcy protection order to give itself time to reorganise its debts and assets.
When it filed for Bankruptcy, Cineworld had debts of around $8.8billion.
At the time, Mooky Greidinger, chief executive of Cineworld released a statement which 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’."
Last month, Cineworld abandoned its plans to sell off its US UK, and Irish businesses after it failed to receive acceptable officers.
However, at the time it said it would continue to auction off its operations outside the UK, Ireland and the US.
Cineworld issues update on UK cinema sites after filing for bankruptcy
This included operations in Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel.
The cinema chain has around 128 sites in the UK and the Republic of Ireland - which operate under the Cineworld and Picturehouse brands - globally the chain has around 750 sites.
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 declined to comment on the announcement.
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