Cineworld halts sale plans
April 3, 2023
Cineworld, the struggling cinema chain, has announced it will raise new funding and has aborted plans to sell its businesses in the US, UK and Ireland after failing to find a buyer.
Cineworld saw its share price fall by nearly 30 per cent after announcing its cancelled sale plans. At the same time, the company said it had agreed a deal with its lenders to restructure its debt and exit bankruptcy.
Cineworld was hit hard by the pandemic and also continues to face stiff competition from streaming services, but says it now plans to raise $2.26 billion of new funding after filing for bankruptcy in August 2022.
Recognised as the world’s second-largest cinema chain (behind AMC), Cineworld employs more than 28,000 people in its 740 theatres.
Cineworld’s chief executive, Mooky Greidinger, said the deal represented a “vote-of-confidence” in the business and propelled the company “towards achieving its long-term strategy in a changing entertainment environment”. The company added it would continue to consider proposals for the sale of its business outside the US, UK and Ireland.
Box office hits in recent months, including the likes of Top Gun: Maverick, Avatar: The Way of Water, John Wick 4 and Creed III, have brought healthy numbers back to cinemas. This Easter, Dungeons & Dragons: Honour Among Thieves (pictured) and The Super Mario Bros Movie are expected to do big business.
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