Insiders anticipate that Cineworld Group PLC (LSE: CINE) is poised to engage administrators momentarily, mere days following Sky’s coverage of a restructuring scheme for the UK-based cinema chain.
The task of transferring the business to its creditors has been earmarked for consulting company AlixPartners.
The restructuring initiative is projected to diminish Cineworld’s parent company’s debt load by an estimated US$4.5bn (£3.5bn).
Cineworld trades from 128 sites in the UK, according to a spokesman, employing thousands of people. Cineworld has been navigating under Chapter 11 bankruptcy protection in the US since September 2022, grappling with a lacklustre recovery post-pandemic and troubles with inflation.
It’s anticipated that the restructuring will eradicate all equity holdings in the company. Nevertheless, its subsidiary companies, Regal, Picturehouse, and Cinema City, are projected to maintain their regular trading operations.
Shares of Cineworld, which is listed in London, were last recorded at 0.7p, reflecting a more than 80% plunge on a year-to-date scale.
