In response to recent speculation, Cineworld provided an update in its August 17 announcement regarding its valuation of strategic options to both gain additional liquidity and potentially restructure its balance sheet through a global deleveraging operation.
Reiterating that Cineworld cinemas, including the Regal chain in the United States, “are open to the public as usual and continue to welcome guests and members,” said the second largest exhibitor in the world, the strategic options with which it can reach its restructuring objectives “include a possible voluntary filing of Chapter 11 in the United States and related ancillary proceedings in other jurisdictions as part of an orderly enforcement process.
Furthermore, “any such deposit is likely to allow the group to access immediate liquidity and support the orderly execution of a fully funded deleveraging transaction,” the company said in a statement. He added that “Cineworld expects to keep its operations in the normal course before and after the presentation and ultimately continue its long-term operations without significantly impacting employees.”
Under heavy debt and in the midst of a box office slump this quarter, as well as facing a weak blank slate in August and September, Cineworld said Friday that it went as usual for the giant as it explores options. This was followed by A. WSJ The report said it was preparing to file for bankruptcy and comes after previously announcing a possible Chapter 11 filing last week, citing “active discussions with various stakeholders” as it evaluates “several strategic options.”
Today’s statement reiterated that any deleveraging operation “would result in a very significant dilution of the existing stake in Cineworld”.
The group continues to evaluate these strategic options, the company said.
As Deadline reported on Friday, no one thinks failure means goodbye to Cineworld, a much more hardened and leaner chain. The exhibitor has a history of bankruptcy.
The industry has been one of the hardest hit in the industry as Covid forced cinemas to close in a painfully unstable and protracted period for seniors, workers and the public alike. Cineworld is not alone in evaluating its own future. Vue International is restructuring and AMC is maneuvering to reduce the risk of survival.
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Source: Deadline
I am Anne Johnson and I work as an author at the Fashion Vibes. My main area of expertise is beauty related news, but I also have experience in covering other types of stories like entertainment, lifestyle, and health topics. With my years of experience in writing for various publications, I have built strong relationships with many industry insiders. My passion for journalism has enabled me to stay on top of the latest trends and changes in the world of beauty.
