Cineworld, the world’s second-largest movie theater chain, announced Wednesday that it would file for bankruptcy in the United States, in order to restructure its liabilities and try to find new liquidity amid the crisis in dark rooms.
“Cineworld and some of its subsidiaries have initiated Chapter 11 bankruptcy protection proceedings in the Federal Bankruptcy Court for the Southern District of Texas,” according to a statement from the British group.
The procedure will allow Cineworld “with the expected support of its secured creditors, to seek to implement debt reduction operations to strengthen its accounts” and accelerate its strategy, adds the group in its press release published on the London Stock Exchange.
Title down 87% since the beginning of the year
The British group benefits from a liquidity of 1,940 million dollars from its creditors to ensure the continuity of its activities during its reorganization, it specifies.
Cineworld recalls that this restructuring will mean, as it had already announced, a dilution of the value of its important shares, information that had caused the share value to collapse a few weeks ago.
It was worth just 4.29 pence on Wednesday, up 10% from the trading session. The stock has plunged 87% since the beginning of the year.
Source: BFM TV
