Cineworld, the world’s second-largest cinema chain, files for bankruptcy

The announcement once again bears witness to the crisis in cinemas: Cineworld, the world’s second largest cinema chain, filed for bankruptcy in the United States, in order to restructure its liabilities and try to find new liquidity.

“Cineworld and certain of its subsidiaries have commenced proceedings for bankruptcy protection in the Federal Bankruptcy Court for the Southern District of Texas,” according to a press release from the British group published on Wednesday.

The activities of the group ensured during the reorganization

The procedure will allow Cineworld “with the expected support of its secured creditors, to seek to implement debt reduction transactions to strengthen its accounts” and accelerate its strategy, adds the group in its press release published on the London Stock Exchange. The British group benefits from liquidity of 1.94 billion dollars from its creditors to ensure the continuation of its activities during its reorganization, he specifies.

Cineworld recalls that this restructuring will result, as it had already announced, in a dilution of the value of its important shares, information which had caused the share value to collapse a few weeks ago. It was worth only 4.29 pence on Wednesday, up 10% on the trading session. The title has collapsed by 87% since the beginning of the year.

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