Troubled cinema chain Cineworld is terminating plans for the sale of its UK, US and Eire companies.
The information was introduced by the world’s second-largest cinema chain on Monday, because it additionally revealed plans to lift $2.26bn (£1.8bn) in new funding in an effort to get out of chapter safety.
Cineworld, with round 750 websites worldwide, together with the Picturehouse chain within the UK, filed for US chapter safety in September.
The monetary restructuring programme introduced on Monday is geared toward coping with its roughly $5bn debt pile.
This can contain lenders offering round $1.46bn (£1.2bn) in new credit score, in addition to $800m (£651m) of fairness to the lenders.
The group mentioned it is going to proceed to commerce, with “enterprise as ordinary”, in the meantime.
Cineworld launched an effort to discover a potential purchaser earlier this yr however had no acceptable gives.
Nonetheless, whereas it is going to finish plans to promote its companies within the UK, US and Eire, it is going to proceed with an public sale for its operations elsewhere.
In an replace to shareholders, it mentioned: “Having mentioned with its key stakeholders, Cineworld has decided that, absent an all-cash bid considerably in extra of the worth established underneath the proposed restructuring, the advertising course of because it pertains to the group’s enterprise within the US, the UK and Eire will likely be terminated.
“Cineworld and its key stakeholders proceed to contemplate the proposals that have been obtained in respect of its ‘remainder of the world’ enterprise (outdoors the US, the UK and Eire) and a course of is underway with the bidders for the RoW Enterprise to evaluate whether or not an appropriate sale transaction could be accomplished.”
Mooky Greidinger, chief government of Cineworld, mentioned: “This settlement with our lenders represents a ‘vote of confidence’ in our enterprise and considerably advances Cineworld in the direction of attaining its long-term technique in a altering leisure surroundings.
“With a rising slate of blockbusters and audiences returning to cinemas in rising numbers, Cineworld is poised to proceed providing film goers essentially the most immersive cinema experiences and preserve its place because the ‘finest place to look at a film’.”
The corporate expects to emerge from chapter safety throughout the first half of this yr, though any sale of its enterprise outdoors the UK, US and Eire may delay this timeline.
Shares within the London-listed firm have fallen virtually 99% prior to now 5 years, struggling a double blow from progress in streaming providers and the COVID-19 pandemic which noticed it having to shut its cinemas underneath social distancing guidelines.