(Alliance News) – Cineworld Group PLC said on Monday it has applied for management in the United Kingdom as part of its restructuring in a bid to reduce debt.
Cineworld shares fell 29% to 0.52p per share in London on Monday morning.
The London-based cinema chain said its board intends to apply to an English court for a guardianship order in connection with its Chapter 11 bankruptcy filing, which would only apply to itself as a listed parent and not to its operating companies or subsidiaries.
Once the administrators have been appointed, the Company will take steps to transfer its assets to its wholly owned subsidiary Crown UK Holdco Ltd and a newly incorporated company. As a result, Cineworld expects to suspend trading in its shares in July.
This comes after Cineworld announced in April that it had filed a restructuring plan with US Bankruptcy Court in the Southern District of Texas where it was hit hard by the Covid-19 pandemic, causing the forced closure of cinemas.
The owner of the cinema chain said that the plan is supported by the lenders who own the majority of the various debt instruments, as well as the lenders who own about 83% of the long-term loans due in 2025 and 2026, and about 69% of the outstanding debts. To debtors under the debtor’s financing facility.
Cineworld expects to exit Chapter 11 cases in July and will continue its global operations and cinemas as normal.
By Sabrina Penty, Alliance News correspondent
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