Cineworld Group plc (LON: CINE) plans to file for receivership as part of a proposed UK restructuring plan.
Cineworld’s stake will no longer be listed on the LSE
As the cinema chain confirmed on Monday, its shares will also be delisted from the London Stock Exchange in July.
The news comes less than a year after Cineworld filed for bankruptcy protection in the US. At the time, the company had nearly $9 billion in net debt on its balance sheet.
The proposed reorganization would cancel approximately $4.53 billion in debt and complete a rights offering for total proceeds of approximately $800 million. However, payment to existing shareholders is not planned.
The pandemic-hit cinema chain is now trading for 56p a share.
CINE expects to exit the Chapter 11 trial in July
When appointed, the administrators will transfer all of Cineworld’s assets to their wholly owned subsidiary, Crown UK Holdco Limited. Per day updates The company further says:
The newly formed company controlled by the group’s lenders became the sole owner of Crown, and the Cineworld Group no longer had any interest in Crown or the rest of the group.
Cineworld still expects to exit Chapter 11 bankruptcy protection next month. Cinema operations continued as normal during the restructuring.
earlier this month The lenders agreedIt paid executives at the movie theater operator a total of $35 million to facilitate their departure after emerging from bankruptcy proceedings in July. Cineworld operates more than 700 cinemas worldwide.
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