Cineworld bankruptcy: British cinema chain files for bankruptcy in the US – what we know

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The cineworld Group, the second largest cinema group in the world, has filed for bankruptcy in the United States as the debt-ridden company seeks time to restructure, bosses have revealed.

The company said it had filed for Chapter 11 – a form of US bankruptcy that businesses often use when planning to recover from current problems.

It plans to emerge from bankruptcy in the first quarter of next year and said it was “confident that a full financial restructuring is in the interest of the group and its stakeholders, taken as a whole, in the long term”. .

The company’s current shareholders are likely to see their existing positions diluted significantly, cineworld said. But its shares are expected to continue trading on the London Stock Exchange.

The company said it would use the restructuring to talk to its landlords in the United States and negotiate better lease terms.

It follows reports last month that the UK-based company was considering a move after struggling to restore footfall following the Covid pandemic.

Cineworld had previously warned that viewership numbers were lower than expected and expected it to remain low through November due to ‘limited’ film versions.

In a statement, the company said: “Despite a gradual recovery in demand since reopening in April 2021, recent admission levels have been below expectations.

“These lower admissions levels are due to a limited film slate which is expected to continue through November 2022 and is expected to negatively impact trading and the group’s liquidity position in the near term.”

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