Cineworld set to face US bankruptcy filing
According to a recent source, The Cineworld Group would probably declare bankruptcy within the next few weeks.
According to a “insider,” the second-largest movie theater chain in the world is planning to file a chapter 11 petition in the US.
According to the Wall Street Journal, it is also considering initiating an insolvency procedure in the UK.
It follows the company’s failure to convince enough moviegoers to return after Covid lockdowns.
The chain has 751 locations with 9,000 screens across 10 nations.
Despite this, the company’s market value has more than halved, and its debt load has increased to more than £4 billion as a result of the pandemic’s disastrous effects on profits.
Recently, managers claimed that lower-than-expected viewing numbers were caused by a lack of blockbuster movies.
In order to aid in its recuperation, the organization had placed its hopes in films like Top Gun: Maverick, The Batman, and Thor: Love And Thunder.
However, it was revealed on Wednesday that management was considering ways to support the finances.
Despite a slow rebound in demand since the reopening in April 2021, admission levels recently have fallen short of expectations, according to a statement.
The group’s liquidity situation and trading are expected to suffer in the short term as a result of the reduced levels of admissions, which are attributable to a constrained film schedule that is forecast to last through November 2022.
According to reports, Cineworld is currently in talks with its lenders about financing the expenditures associated with the bankruptcy procedure.
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