Cineworld screens to remain open despite administration
Struggling cinema chain Cineworld has said its sites will remain open despite an ongoing administration process.
Ownership of the chain will now be transferred from Cineworld PLC to a newly-created subsidiary, called Crown UK Holdco.
The holding company is made up of the group’s lenders, meaning the group’s plan to save Cineworld’s sites will not mean a rescue of the company itself.
As a result, the chain’s shareholders are set to miss out on any recovery.
Under its restructuring plans, around $4.53bn (£3.56bn) of Cineworld’s funded indebtedness will be released, along with raised proceeds of $800m (£628.73m) and $1.46bn (£1.15bn) of new debt financing.
The chain is still expecting to emerge from bankruptcy proceedings in July 2023.
It is now anticipated that the listing of Cineworld’s shares will be suspended shortly, following an application to the Financial Conduct Authority.
Cineworld added that it will be “business as usual” for its cinemas and subsidiary companies, which include Regal, Cinema City, Picturehouse, and Planet.