The British group is benefiting from $1.94 billion in liquidity from its creditors to ensure the continuity of its activities during its reorganization. (Photo: 123RF)
Cineworld, the world’s second largest movie chain, announced on Wednesday that it has filed for US bankruptcy, in order to restructure its obligations and try to find new liquidity in the midst of the crisis in the darkrooms.
“Cineworld and some of its subsidiaries have commenced Chapter 11 bankruptcy proceedings in Federal Bankruptcy Court for the Southern District of Texas,” according to a statement from the British group.
The measure will allow Cineworld “with the expected support of its secured creditors, to pursue debt-reduction transactions to strengthen its accounts” and accelerate its strategy, the group adds in its press release published on the London Stock Exchange.
He explained that the British group benefits from the liquidity of $1.94 billion from its creditors to ensure the continuation of its activities during its reorganization.
Cineworld states that this restructuring, as it has already announced, will dilute the value of its critical shares, information that caused the value of the action to crash a few weeks ago.
It was worth just 4.29 pence on Wednesday, up 10% from the trading session. The title has collapsed 87% since the beginning of the year.
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