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Cineworld Group PLC on Monday confirmed that the world’s second-largest cinema chain owner is considering filing for voluntary bankruptcy in the US and associated proceedings in other regions.
The London-based cinema company — which owns Regal Cinemas — responded to a news report published by the Wall Street Journal on Friday, saying that Cineworld was preparing to file a chapter 11 petition within weeks after struggling to rebuild movie-theatre attendance from pandemic lows.
Cineworld said that any filing “would be expected to allow the Group to access near-term liquidity and support the orderly implementation of a fully funded deleveraging transaction.”
“Cineworld would expect to maintain its operations in the ordinary course until and following any filing and ultimately to continue its business over the longer term with no significant impact upon its employees.”
Cineworld has engaged lawyers from Kirkland & Ellis LLP and consultants from AlixPartners to advise on the bankruptcy process and is considering filing an insolvency proceeding in the UK, WSJ reported.
Picture Credit: The Guardian
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