Sep 7, 2022
Cineworld files for bankruptcy protection in US
Cineworld, the world's second-largest cinema chain, has filed for bankruptcy protection in the US after buckling under a debt load worsened by pandemic closures. The UK-based owner of chains such as Regal Cinemas said in a filing on Wednesday that it was seeking to cut its debt and shore up its balance sheet through a restructuring of its UK, US and Jersey businesses, in a move that is set to all but wipe out equity holders. The group's London-listed shares have shed 93.6 per cent of their value over the past year as the group floundered, though they rose almost 10 per cent on Monday to 4.3p. "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 and said it expected to emerge from Chapter 11 during the first quarter of 2023. Employees will continue to be paid, while its chains, which also include Cinema City, Picturehouse and Yes Planet, will carry out business as usual.
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