Cineworld's Revitalization Plan: Exiting US Bankruptcy in July Marks a Promising New Beginning
Cineworld's Revitalization P...
Subscribe to Newsletter

Cineworld's Revitalization Plan: Exiting US Bankruptcy in July Marks a Promising New Beginning

25 May 2023
3241
2 min.
3
Cineworld's Revitalization Plan: Exiting US Bankruptcy in July Marks a Promising New Beginning

Cineworld's Battle for Survival

Cineworld, the world's second-largest cinema chain, aims to exit bankruptcy protection in July. The company, listed on the London Stock Exchange, has gained further support from lenders for its restructuring plan after filing for bankruptcy protection in the US last year. Cineworld's challenges stem from a significant $5 billion (£4 billion) debt and decreasing audience figures.

Cineworld has successfully reached an agreement with lenders who control nearly all of its revolving credit facilities and 69% of its outstanding debts. This milestone allows the company to proceed with its restructuring plan, effectively granting it a fresh start later this summer. In a statement released on Thursday morning, Cineworld and its affected subsidiaries confirmed their expectation to conclude the Chapter 11 cases by July 2023.

Operational Updates

Amidst the restructuring efforts, Cineworld remains committed to operating its approximately 750 global cinema sites. The company assures customers that all existing memberships at venues such as Regal, Cinema City, Picturehouse, and Planet will be honored.

Failed Sale and Funding

Last month, Cineworld made the decision to discontinue its attempts to sell its businesses in the US, UK, and Ireland after failing to receive acceptable offers. Instead, the company plans to raise approximately $2.3 billion in new funding, in lieu of the sale.

Unfortunately, as part of the restructuring plan, all current shareholders will face significant losses, as Cineworld's stock has declined by nearly 99% over the past five years. The detrimental impact of Covid-19 restrictions, which forced the closure of Cineworld's cinema sites, had a particularly severe effect on the company.

By restructuring its debts and assets, Cineworld aims to overcome its financial challenges and revitalize its operations. With the backing of lenders and a focus on providing uninterrupted cinema experiences for its loyal customers, the company remains determined to navigate through this difficult period and emerge stronger.

Companies3 in the news

Section:
Source foto:
flickr.com
Rating companies
Instagram
16 Mention
Tesla
14 Mention
Netflix
13 Mention
Ford Motor Company
11 Mention
JP Morgan Chase
10 Mention
Amazon
9 Mention
White House
8 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8126347483
Died this year
23646041
Born this year
58173446