Cineworld, the world’s second-largest cinema chain, has filed for bankruptcy protection in the US
The company has secured a debtor-in-possession financing facility of almost $2bn from its lenders,
which include US investment managers Invesco, Eaton Vance and State Street
The lenders are expected to take control during the bankruptcy process.
Cineworld said it would set out further restructuring plans “in due course”, while its London-listed shares will not be suspended.
A deal to reduce the group’s nearly $9bn in debt would “result in very significant dilution of equity interests in the group”, said Cineworld
warning that “there is no guarantee of any recovery for holders of existing equity interests”.
“The pandemic was an incredibly difficult time for our business
with the enforced closure of cinemas and huge disruption to film schedules that has led us to this point,” said Greidinger.
The company also plans to discuss improving US cinema lease terms with landlords