Business

Cinema chain Cineworld files for Chapter 11 bankruptcy as it settles $4.8 billion in debt

Cinema operator Cineworld Group LLC has filed for Chapter 11 bankruptcy protection in the US as it handles billions of dollars in debt and lower-than-expected show attendance.

CEO Mooky Greidinger said: “The pandemic has been an extremely difficult time for our business, with cinemas forced to close and major disruption to the schedule. Cinema has led us to this point,” said CEO Mooky Greidinger.

The company and its subsidiaries have committed a debtor-finance facility of nearly $1.94 billion from existing lenders, which will help ensure Cineworld’s operations continue as normal. while it was reorganized.

Last month, the British company, which owns Regal Cinemas in the US and operates in 10 countries, said its theaters remained “open for business as usual”. consider options for relief from its debt burden.

Cineworld has accumulated $4.8 billion in net debt, excluding leases. Previously, the company, which has about 28,000 employees, said its recent enrollment levels were lower than expected. And with “limited film blocking facilities,” it expects lower levels to continue through November. That means its finances will grow further.

Cineworld is expected to publish from Chapter 11 in the first quarter of 2023.

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