Cineworld Group, the world's second-largest movie theater operator and owner of Regal Cinemas, has filed for Chapter 11 bankruptcy protection from creditors amid a severe box office downturn.
The London-based business on Wednesday said the company and its subsidiaries had started legal proceedings in the United States Bankruptcy Court for the Southern District of Texas in a bid to reduce its debts. During its restructuring, the company said it expected to operate its business as usual with vendors, suppliers and employees being paid as usual, the group said in a statement.
"The pandemic was an incredibly difficult time for our business, with the enforced closure of cinemas and huge disruption to film schedules that has led us to this point," said Cineworld Chief Executive Mooky Greidinger. "This latest process is part of our ongoing efforts to strengthen our financial position and is in pursuit of a de-leveraging that will create a more resilient capital structure and effective business."
