- Title: Debt-laden Cineworld stares at possible bankruptcy
- Date: 22nd August 2022
- Summary: LONDON, ENGLAND, UNITED KINGDOM (AUGUST 19, 2022) (REUTERS) STREET VIEW OF CINEWORLD CINEMA AT WEST INDIA QUAY SIGN READING (English): "Cineworld Cinemas" VARIOUS OF ADVERTS ON EXTERIOR OF CINEWORLD CINEMA SIGN READING (English): "Cineworld Cinemas"/ ENTRANCE TO CINEMA EXTERIOR OF CINEWORLD CINEMA
- Embargoed: 5th September 2022 09:43
- Keywords: Cineworld Cineworld bankruptcy Regal Regal cinemas bankrupt cinemas movies pandemic
- Location: LONDON, ENGLAND, UNITED KINGDOM / LOS ANGELES, CALIFORNIA, AND NEW YORK, NEW YORK, UNITED STATES
- City: LONDON, ENGLAND, UNITED KINGDOM / LOS ANGELES, CALIFORNIA, AND NEW YORK, NEW YORK, UNITED STATES
- Country: UK
- Topics: Company News Markets,Europe,Economic Events
- Reuters ID: LVA001984722082022RP1
- Aspect Ratio: 16:9
- Story Text: Cineworld, the world's second-largest cinema operator, is staring at a possible bankruptcy filing as it struggles to cut debts that soared during the pandemic, it warned on Monday (August 22).
The owner of Regal cinemas in the United States, which had $8.9 billion of net debt at the end of 2021, said last week a lack of blockbusters was keeping movie-goers away and impacting its cash flows.
The UK-based company, which is also still reeling from the failed takeover of a Canadian rival, had a market value of just 56 million pounds ($66 million) at Friday's (August 19) close.
It had already said it was looking at ways to potentially restructure its balance sheet, and said on Monday one option was a voluntary Chapter 11 bankruptcy filing in the United States.
Shares of the London-listed company plunged to a record low on Friday after the Wall Street Journal first reported the potential move.
The company said it was in talks with many of its major stakeholders, including lenders and legal and financial advisers, and reiterated any deleveraging transaction would lead to very significant dilution of existing equity interests.
(Production: Gerhard Mey, Lucy Marks) - Copyright Holder: REUTERS
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