Stricken cinema chain Cineworld has said it will file for administration in the UK as part of a restructuring plan that is set to wipe out shareholders.
The world’s second largest cinema chain said it will apply for administration for the London-listed company in July, which will see shares in the firm suspended.
But it stressed that the move will not impact the British operations for the holding company, with cinemas continuing to remain open as usual.
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.
The group, which also owns the Picturehouse brand, is moving forward with plans to restructure its near five billion US dollars (£3.9 billion) debt pile to allow it to exit bankruptcy.
It is also looking to raise 800 million US dollars (£628 million) through a rights offering and secure 1.46 billion US dollars (£1.1 billion) of new debt financing.
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.”
