Cineworld plans U.S. bankruptcy to manage debt amid weak sales
BNN Bloomberg
Movie theater chain Cineworld is weighing filing for bankruptcy protection in the U.S. in the coming weeks after a slow recovery in ticket sales dented the company’s finances, according to people with knowledge of the situation.
The British chain operates Regal Cinemas in the US and hundreds of other locations. It’s in negotiations with certain lenders around a restructuring plan that could end in bankruptcy, said the people, who asked not to be named because talks are private. Discussions aren’t final and could change based on the talks, they added.
A representative for Cineworld declined to comment on the potential bankruptcy, and referred to a statement Wednesday when the company said it was considering restructuring options. Reorg first reported on the bankruptcy filing plans.
Cineworld shares plunged as much as 82 per cent on Friday to their lowest price since they were listed in 2007.
