Cineworld files for bankruptcy in the US
Movie theatre chain Cineworld has filed for bankruptcy in the US as the debt-laden business seeks time to restructure.
But bosses at the chain say the move does not mean the imminent closure of cinemas.
The company, which has multiplexes across the West Midlands including in Telford and Shrewsbury, said it had filed for Chapter 11 – a form of US bankruptcy that businesses often use when they plan to bounce back from their current problems.
It plans to emerge from bankruptcy in the first quarter of next year and said it is “confident that a comprehensive financial restructuring is in the best interests of the group and its stakeholders, taken as a whole, in the long term.”
Current shareholders in the business are likely to see their existing positions diluted significantly, Cineworld said.
But its shares are expected to continue trading on the London Stock Exchange.
The business said it would use the restructuring to talk to its landlords in the US and negotiate for better lease terms.
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