Regal Cinemas: Cineworld says it could file for Chapter 11 bankruptcy
Britain’s Cineworld Group said in a statement that a “voluntary Chapter 11 filing in the US” was one of the options it was considering to try to reduce its debt burden.
Meanwhile, Cineworld and Regal cinemas were open for “business as usual”, he added, and would remain so.
“Cineworld would expect to maintain operations in the normal course until and after any filing and ultimately continue operations for the longer term without significant impact to its employees,” the company said in the statement. released in response to reports last week.
Cineworld said earlier last week that despite a “gradual recovery in demand” since last spring, admissions were below expectations.
A Chapter 11 filing would give the company more time to restructure its debt and make a proposal in bankruptcy court, while continuing to operate. Many large US corporations have successfully used Chapter 11 to put their businesses on a stronger financial footing.
Cineworld, which owns more than 500 cinemas in the United States as well as Picturehouse Cinemas in the United Kingdom, reiterated on Monday that any “deleveraging operation” would result in a “very significant dilution of existing holdings” for Cineworld shareholders.
“Cineworld’s evaluation of these strategic options remains ongoing. A further announcement will be made as and when appropriate,” he added.
— Anna Cooban and Frank Pallotta contributed reporting.