Cineworld has announced that it will file for administration across the UK, as the world's second largest cinema chain moves towards a new restructuring plan. The worldwide chain, which operates cinemas in Newcastle, Boldon, Dalton Park and Middlesbrough, will apply the process for its London-listed company in July, which will see shares in the firm become suspended.
However, Cineworld has stressed that the move will not impact British operations for the holding company - with chains including Regal, Cinema City and Picturehouse remaining open and operating as usual. The group is moving forward with plans to restructure its £3.9billion debt, to allow it to exit bankruptcy.
It's also looking to raise some £628million through a rights offering, and secure £1.1billion in new debt financing.
Read more: List of Cineworld cinemas at risk as chain gives update on future - including two in North East
The Mirror reports that Cineworld filed for Chapter 11 bankruptcy in the US back in September last year, however recently reported plans to exit the protection from July. The firm today said that it expects to emerge from Chapter 11 bankruptcy next month.
The company filed for a bankruptcy protection order in a bid to buy time to reorganise debts and assets, with debts of around $8.8billion at the time of filing.
At the time, Mooky Greidinger, chief executive of Cineworld released a statement which 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’."
Just last month, the firm abandoned plans to sell off its US, UK and Irish businesses, after failing to receive acceptable offers. At the time, it said it would continue to auction off operations outside of the aforementioned areas - including business in Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel.
The cinema chain has some 128 sites across the UK and ROI, which operate under the Cineworld and Picturehouse brands. Worldwide, the chain has around 750 sites. Alongside other cinema chains, Cineworld was blasted by the Covid-19 pandemic and restrictions put in place as a result.
On top of this, competitor streaming services at cheaper prices also put pressure on the family-favourite cinema establishments across the UK and further afield.
Cineworld declined to comment on the announcement.
