World’s second largest movie theater chain Cineworld files for bankruptcy

The British company, which owns more than 500 movie theaters across the United States, said: What Chapter 11 Began Proceedings in the United States Bankruptcy Court for the Southern District of Texas to reduce the company’s debts. It is also expected that the action will “strengthen the balance sheet and provide the financial strength and flexibility to accelerate and leverage Cineworld’s strategy in the motion picture industry.”

The company added that it could raise about $2 billion in funding from existing lenders to continue operations. “Throughout this process, Cineworld intends to operate its global business and cinemas as normal,” Cineworld said in its filing.

Company warned at the end of last month A voluntary Chapter 11 submission was one of the options we were considering to reduce our debt.

Cineworld CEO Mooky Greidinger said in a statement Wednesday: “The pandemic has been an incredibly difficult time for our business, and the forced closure of movie theaters and significant disruption to movie schedules have brought us to this point.”

Greidinger added that the bankruptcy filing is “part of our ongoing effort to strengthen our financial position, as we pursue deleveraging to create a more resilient capital structure and effective business.” .

“This will allow us to continue executing on our strategy of reimagining the most immersive cinematic experience for our guests through the latest and most advanced screen formats and enhancements to our flagship theaters,” he added. Our goal is to further accelerate our strategy and enhance our position as ‘the best place to watch movies’.”

Like many theaters, Cineworld has struggled during the pandemic, devastated the industry and still affects exhibitions. The global health crisis has closed theaters around the world, Company We lost $2.7 billion in 2020 and another $566 million in 2021.

The economics of theaters have improved, but they are still far from returning to normal.

Thanks to blockbuster hits like “Top Gun: Maverick” and “Jurassic Park: Dominion,” and smaller hits like “Elvis” and “The Black Phone,” the domestic box office is buoyant this summer. recovered.Still, movie dried up in the last few weeks Shortages of new movies and supply chain problems hit Hollywood as many features went straight to streaming.

— Mark Thompson and Anna Cooban contributed to the report.

Source: www.cnn.com

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