Cineworld has suspended its shares on the London stock exchange today as part of its ongoing restructuring process.
The beleaguered exhibitor has also secured a new revolving credit facility of £250m.
In a statement this morning, Cineworld said that it expects to emerge from Chapter 11 on July 31. It said that its board of directors has approved the appointment of administrators and has applied to the High Court in London for an administration order under the Insolvency Act.
Cineworld warned last month that it planned to file for administration and suspend its shares.
Cineworld said that its restructuring will involve the release of approximately $4.53bn of the Group’s funded indebtedness, a rights offering to raise $800m and $1.71bn in new debt financing, which includes the new revolving credit facility of $250m.
Cineworld stressed that the restructuring process “does not provide for any recovery for holders of Cineworld’s existing equity interests.”
In its statement, Cineworld said that its cinemas continue to operate and this will continue to be the case as it emerges from Chapter 11 and moves into administration. 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. The Group continues to honour the terms of all existing customer membership programmes, including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the United Kingdom.”
Cineworld filed for bankruptcy protection in the US in September last year after grappling with heavy debts and being hit hard by the Covid crisis and the growth of streaming platforms.
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