Cineworld files for Chapter 11 bankruptcy

7th Sep 2022 15:54

(Sharecast News) - Cineworld said on Wednesday that it has filed for Chapter 11 bankruptcy in the US.

The cinema operator said the filing involves businesses in the US, UK and Jersey and the Chapter 11 restructuring process is expected to significantly reduce debt and strengthen its balance sheet and liquidity position.

"The group Chapter 11 companies enter the Chapter 11 cases with commitments for an approximate $1.94 billion debtor-in-possession financing facility from existing lenders, which will help ensure Cineworld's operations continue in the ordinary course while Cineworld implements its reorganisation," it said.

Cineworld operates in 10 countries, with 747 sites and 9,139 screens globally.

Chief executive Mooky Greidinger said: "We have an incredible team across Cineworld laser focused on evolving our business to thrive during the comeback of the cinema industry. 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.

"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. This will allow us to continue to execute our strategy to reimagine the most immersive cinema experiences for our guests through the latest and most cutting-edge screen formats and enhancements to our flagship theatres."

At 1605 BST, the shares were up 18% at 4.60p.