The Wall Street Journal reported Friday that Regal Cinemas owner Cineworld has met with lawyers from Kirkland & Ellis LLP and advisers from AlixPartners for comment on bankruptcy proceedings. The company is expected to file a Chapter 11 petition in the U.S. and is considering filing for bankruptcy in the U.K., according to news outlets.
According to Reuters, the company’s shares fell 2022 % after the announcement.
Indiewire reported that the company issued a statement announcing that it was filing a petition “due to the expected duration of By November 2022 and [expected] will have a negative impact on trading and the group’s liquidity position in the short term. Any deleveraging trades may result in Cineworld’s current There is significant dilution of the stake.”
Entertainment news source Variety reported Monday that Cineworld has responded to its earlier announcement. Issue a statement to let customers and employees know that its theaters will remain open. “Cineworld expects to remain in normal operations before and after any filing, and ultimately to continue its business in the long term, without significant impact on its employees,” the company said.
Cineworld reportedly had a net debt of approximately $5 billion at the end of
year. The company was in 7 Month
Received 11 Million Dollar Incremental Loan.
Regal is the second largest cinema chain in the US, while Cineworld is the largest cinema chain in the UK, and The second largest cinema chain in the world (plus Regal and other national brands it owns).
Cineworld was founded in 81 and acquired Regal chain on 450. The company’s performance is still below the level of the epidemic.
) Sources: Wall Street Journal (Alexander Gladstone), Indiwire (Samantha Bergeson), Variety (Naman Ramachandran)