Cineworld to go into administration
The chain filed for bankruptcy in the US last year
Cineworld is set to file for administration in the UK as part of its restructuring plan which will remove shareholders.
The world’ second largest cinema chain will apply in July, but has stressed the move will not impact operations, and cinemas will remain open as usual.
The chain has 128 cinemas across the UK and Ireland, but filed for Chapter 11 bankruptcy in the US last year after lower than expected audience numbers.
Cineworld said: “Cineworld continues to operate its global business and cinemas as usual without interruption and this will not be affected by the entry of Cineworld Group plc into administration.
"The group and its brands around the world - including Regal, Cinema City, Picturehouse and Planet - are continuing to welcome customers to cinemas as usual.”
Services will continue to operate as usual
The group is hopefully the plans to restructure its roughly £3.9bn debt to allow it to exit bankruptcy.
It aims to reduce debts by around £3.6bn with a plan to raise £628m through a rights offering, while also securing £1.1bn of new debt financing.
The company's shares have already plummeted by almost 99% over the past five years, after being hit hard by the pandemic which forced it to close some of its sites.
In April, the group also scrapped plans to sell its businesses outside the UK, US and Ireland after potential bidders failed to meet the value desired by Cineworld's lenders.
It hopes to emerge from bankruptcy protection in July after receiving backing for its overhaul from most of its lenders.