CINEWORLD yesterday said it is set to file for administration and suspend trading on the
In a statement yesterday, the cinema firm said its proposed restructuring would involve calling in administrators and could release approximately
Bosses said administrators would shift all its assets into the ownership of a wholly-owned subsidiary called Crown. A newly incorporated company controlled by the group's lenders will become the sole owner of Crown, with
Crown or the rest of the group.
"The proposed restructuring, when implemented, will transform the group's balance sheet and provide it with significant additional liquidity to fund its long-term strategy," Cineworld said.
The firm said that as a consequence of its administration, the trading of its shares on the
Shareholders are set to be wiped out by the arrangements, with the firm confirming it would "not provide for any recovery for holders of Cineworld's existing equity interests".
Cinemas will remain open.
Cineworld said: "The group and its brands around the world - including Regal, Cinema City, Picturehouse and Planet - are continuing to welcome customers to cinemas as usual."
(c) 2023 City A.M., source