The troubled cinema chain Cineworld has said it will raise $2.3bn (£1.8bn) in new funding as part of a plan to exit bankruptcy and that it will terminate efforts to sell its US, UK and Irish businesses.
The debt-ridden group, which runs about 750 sites globally, filed for bankruptcy protection in the US last year.
It has now said it will restructure its roughly $5bn-debt pile in order to emerge from Chapter 11 bankruptcy during the first half of 2023. The restructuring will involve lenders providing about $1.5bn in new credit, as well as $800m of equity to the lenders.
Earlier this year, Cineworld, which also owns the Picturehouse chain in the UK, launched a process to find a potential buyer.
However, after struggling to find an acceptable offer, it said on Monday it would halt the potential sale efforts for the businesses in the UK, US and the Republic of Ireland.
It will, however, continue with an auction for its operations outside of these countries.
Mooky Greidinger, the chief executive of the group, said: “This agreement with our lenders represents a vote of confidence in our business and significantly advances Cineworld towards achieving its long-term strategy in a changing entertainment environment.
“With a growing slate of blockbusters and audiences returning to cinemas in increasing numbers, Cineworld is poised to continue offering moviegoers the most immersive cinema experiences and maintain its position as the best place to watch a movie.”
The group said it would continue to trade throughout the financial restructuring process. It will be hoping for a boost in business over the Easter holidays with the recent release of films such as Dungeons & Dragons: Honor Among Thieves and The Super Mario Bros. Movie.
Cineworld’s shares have plunged almost 99% over the past five years. It was hit particularly hard by the pandemic, which led to the enforced closure of its cinema sites.
The business has posted significant losses since and has also come under pressure from growth in streaming services.
