CINEWORLD has secured $785m from existing lenders after the company filed for bankruptcy in the United States earlier this week.
This means that the chain will now have more time to reduce its debt and meet ongoing obligations to vendors, suppliers and employees. Cineworld cinemas across the UK and worldwide will remain open and operate as normal. This will come as welcome news to the chain, who as of recently had only $4 million in cash. Without the recent ruling, which was approved by Judge Marvin Isgur at an extensive hearing, the business would likely have closed entirely – leaving thousands without employment.
Following this development, shares in Cineworld rose 7.6%, to 4.4p. Within minutes of initial reports by the Wall Street Journal of Cineworld filing for bankruptcy, shares plummeted by two-thirds, from 20p to 2p.
Prior to the pandemic it was trading at £1.97.
CEO Mooky Greidinger said: “Today’s approval of our requested ‘first day’ relief is a positive step forward for the Group and our restructuring efforts.
“As we position Cineworld for long-term growth, through this Chapter 11 process and beyond, we remain steadfast in our commitment to providing our guests with the most memorable moviegoing experiences and maintaining our long-standing relationships with our business partners.”
Cineworld operates 747 theaters and 9139 screens globally, with 26 of these theatres (and 93 screens) being based in the UK.
