Cineworld predicts July bankruptcy exit
Struggling cinema chain Cineworld has said it expects to exit bankruptcy proceedings in July, some nine months after filing for protection in a US court.
The chain had been struggling with dwindling customer numbers and around £3bn of debt. Cineworld’s shares have taken a drastic tumble over the last few years, falling from 222.6p in December 2019 to just 0.93p on Thursday morning.
After securing new funding in April, Cineworld subsequently dropped its sales process after failing to find a buyer.
The additional lenders have agreed to amended and restated versions of restructuring agreements filed with a United States Bankruptcy Court on April 2.
As a result, the restructuring agreement now has the support of lenders controlling 99% of Cineworld’s rolling credit facilities, and 69% of its outstanding debts.
However, Cineworld said that the proposed agreements do not provide any recovery for its existing shareholders.
The chain said that it will continue business “as usual”. Cineworld operates cinemas in the United Kingdom, Ireland, the United States, Poland, Czechia, Slovakia, Hungary, Bulgaria, Romania, and Israel.