Cineworld announced it expects to exit bankruptcy in July after aquiring more backing from lenders.
The world's second largest cinema chain previously filed for bankruptcy in the US last year after becoming crippled by excessive debts and low audience numbers. However, the firm revealed on Thursday (May 25) that it has secured support from lenders controlling roughly 99 per cent of its legacy lending facilities and at least 69 per cent of its outstanding debt.
The company which also owns the Picturehouse brand, will go ahead with plans to restructure it debt of around five billion US dollars to allow it to exit bankruptcy. The company highlighted that it is continuind to run its venues "as usual without interruption."
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In a statement is said: "Cineworld and its brands around the world, including Regal, Cinema City, Picturehouse and Planet, are continuing to welcome customers to cinemas as usual. The group continues to honour the terms of all existing customer membership programmes, including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the UK.”
The restructuring plan will wipe out shareholders in the cinema chain to support its lenders and creditors. Its shares already plummented by 99 per cent over the past five years, with the pandemic hitting it hard and forcing it to close some of its cinemas.
The groups also scrappled plans to sell its businesses outside the UK, US, and Ireland after potential bidders failed to meet the value desired by the company's lenders.
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