Cineworld has revealed what will happen to its cinemas across Greater Manchester as it prepares to enter administration.
The troubled chain has confirmed it file for administration in the UK as part of a restructuring plan that is set to wipe out shareholders.
The company, which has sites in Aston-under-Lyne, Bolton and Didsbury, is the world’s second-largest cinema chain.
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Cineworld will apply for administration next month in a move which will see its shares suspended from the London Stock Exchange.
However, the business has stressed the move will not affect the British operations for the holding company, with cinemas continuing to remain open as usual.
Alongside its three in Greater Manchester, Cineworld has 128 cinemas across the UK and Ireland.
Cineworld filed for Chapter 11 bankruptcy in the US last year after being weighed down by its mammoth debts and weaker-than-hoped audience numbers.
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The group, which also owns the Picturehouse brand, is moving forward with plans to restructure its roughly £3.9billion debt pile to allow it to exit bankruptcy.
It aims to reduce debts by around £3.6billion with a plan to raise £628 million through a rights offering, while also securing £1.1 billion of new debt financing.
The restructuring plan is set to wipe out shareholders in the cinema chain in order to support its lenders and creditors.
Shares fell by more than a quarter in Monday morning trading on news of the administration plans, although the stock has already plummeted by almost 99% over the past five years, after being hit hard by the pandemic which forced it to close some of its sites.
Cineworld said: "Cineworld continues to operate its global business and cinemas as usual without interruption and this will not be affected by the entry of Cineworld Group plc into administration.
"The group 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."
In April, the group also scrapped plans to sell its businesses outside the UK, US and Ireland after potential bidders failed to meet the value desired by Cineworld’s lenders.
It hopes to emerge from bankruptcy protection in July after receiving backing for its overhaul from most of its lenders.
