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The British group is benefiting from a $1.94 billion cash infusion from its creditors to ensure continuity of operations during its restructuring. (Photo: 123RF)
LONDON – Cineworld, the world’s second-largest cinema chain, announced Wednesday that it will file for bankruptcy in the United States to restructure its liabilities and try to find new cash flow amid a crisis in darkrooms.
According to a statement from the British group, “Cineworld and certain of its subsidiaries have commenced Chapter 11 bankruptcy protection proceedings in the Federal Bankruptcy Court for the Southern District of Texas.
The process allows Cineworld to “accelerate its strategy to pursue debt reduction transactions to strengthen its accounts, with the expected support of its secured creditors,” the group said in its press release to the London Stock Exchange.
The British group is benefiting from $1.94 billion in cash flow from its creditors to ensure continuity of operations during its restructuring, he notes.
As Cineworld has already announced that the restructuring will reduce the value of its major holdings, Cineworld recalls information that caused the operation’s value to plummet a few weeks ago.
It was worth just 4.29 pence on Wednesday, up 10% in the trading session. The title is down 87% since the start of the year.
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