(LONDON) Cineworld, the world’s second-largest cinema chain, announced Wednesday that it will file for bankruptcy in the United States to restructure its liabilities and try to find new cash flow amid a crisis in its darkrooms.
Posted at 12:19 p.m.
“Cineworld and certain of its subsidiaries have commenced bankruptcy protection proceedings (Chapter 11) in the federal bankruptcy court for the Southern District of Texas,” according to a statement from the British panel.
The move accelerates Cineworld’s strategy to “seek to structure debt reduction transactions to strengthen its accounts, with the expected support of its secured creditors,” the group said in a press release to the London Stock Exchange.
The British group is benefiting from $1.94 billion in cash flow from its creditors to ensure continuity of operations during its restructuring, he notes.
As Cineworld has already announced that the restructuring will reduce the value of its major holdings, Cineworld recalls information that caused the operation’s value to plummet a few weeks ago.
It was worth just 4.29 pence on Wednesday, up 10% in the trading session. The title is down 87% since the start of the year.
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