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Britain’s Cineworld Group said in a statement that one of the options it is evaluating in an attempt to reduce its debt burden is a “voluntary Chapter 11 filing in the United States.”
Meanwhile, Cineworld and Regal theaters were open for “business as usual”, and will remain so, he added.
“Cineworld will continue to operate in the normal course until and including any filings and ultimately expect to continue business for an extended period of time without any significant impact on employees,” the company said in a statement to reporters last week.
Cineworld said earlier last week that admissions were below expectations despite a “gradual recovery in demand” from last spring.
A Chapter 11 filing gives the company more time to restructure its debt and file a proposal with the bankruptcy court while continuing to operate. Many large American companies have successfully used Chapter 11 to put their businesses on solid financial footing.
Cineworld, which owns more than 500 movie theaters in the United States and Picturehouse cinemas in the United Kingdom, reiterated that any “disposal transaction” would “extinguish very significant equity interests” for Cineworld shareholders.
“Cineworld’s review of these strategic options is ongoing. Further announcements will be made if and when necessary,” he added.
Cineworld’s stock recovered slightly after Friday’s triumphant run but still hovers around 60% below Thursday’s close.
– Anna Kuban and Frank Pallotta contributed reporting.
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