Cinema chain Cineworld files for Chapter 11 bankruptcy

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Movie theater operator Cineworld Group LLC has filed for Chapter 11 bankruptcy protection in the United States as it faces billions of dollars in debt and lower-than-expected screening attendance.

“The pandemic has been an incredibly challenging time for our business, with the forced closure of theaters and huge disruptions to movie schedules bringing us to this point,” CEO Mooky Greidinger said in a statement.

The company and its subsidiaries have commitments for a debtor-in-possession financing facility of approximately $1.94 billion with existing lenders, which will help ensure Cineworld’s operations continue as usual while it is undergoing a reorganization.

Last month the British company, which owns Regal Cinemas in the United States and operates in 10 countries, said its cinemas remained “open as usual” as it considered options for debt relief.

Cineworld had accumulated $4.8 billion in net debt, not including rental debt. The company, which has about 28,000 employees, has previously said its admissions levels recently fell short of expectations. And with a “limited movie slate,” he expects the lower tiers to continue through November. This would mean further tightening of its finances.

Cineworld plans to release Chapter 11 in the first quarter of 2023.

ABC News

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