Cineworld prepares for US bankruptcy filing

Regal Cinemas Owner Cineworld Prepares for Bankruptcy Filing

the owner of Regal Cinemas, is preparing to file for bankruptcy within weeks after struggling to rebuild attendance from pandemic lows, according to people familiar with the matter.

The London-based chain narrowly escaped bankruptcy in 2020 after landing a lifeline from creditors while its nearly 800 theaters were shut due to Covid-19 restrictions.

Cineworld prepares for US bankruptcy filing

World’s second-biggest cinema chain has warned 

 

 Cineworld, the world’s second-largest cinema chain, is preparing for a possible US bankruptcy filing after it warned the market this week that it was in discussions to restructure the business and find extra cash.

Filing for Chapter 11 bankruptcy in the US was “one option” under consideration by the chain, which also owns the US-based Regal Cinemas brand, a person familiar with the company’s thinking said. The law firm Kirkland & Ellis is advising on the process.

Shares in the London-listed group plunged 80 per cent to below 2p in early afternoon trading after reports first emerged in the Wall Street Journal. The stock has since rallied to just under 4p. So far this year, the company’s shares have lost 90 per cent of their value.