Cineworld to file for administration in England
Fri, 26 May 2023 | ADMINISTRATION
Cineworld Group plc, the UK arm of the Cineworld chain is reportedly filing for administration in England.
The cinema chain, which operates 751 sites across 10 countries is intending to apply to the court in England for an administration order as part of a restructuring plan to reduce its debt levels. The move comes as part of a wider restructuring of the group after it filed for Chapter 11 bankruptcy protection in the US last year.
According to media reports, the restructuring that the directors of Cineworld Group plc are planning will release about $4.53bn of the group's funded indebtedness. This will include a rights offering to raise gross proceeds of $800m and the provision of $1.46bn in new debt financing.
The administration application only applies to Cineworld Group plc, the listed parent company of the Cineworld group, and not to any of the operating companies or subsidiaries in the rest of the group. The company has also stressed that it is "business as usual" for its venues in England and it will continue to operate its global business and cinemas as usual without interruption. However, Cineworld's shares will be suspended from trading on the main market of the London Stock Exchange pending the announcement of an application to appoint administrators.
The assets of the listed business are set to be transferred to its wholly owned subsidiary, Crown UK Holdco Ltd, with a newly incorporated company to be controlled by the group's lenders becoming the sole owner of Crown.
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