(Reuters) – Cineworld, the world’s second-largest cinema operator, said on Monday it was considering several options, including a potential U.S. bankruptcy filing, due to cash flow difficulties.
The title of the group, listed in London, has fallen by nearly 59% since Friday and registered a historic low after an article in the Wall Street Journal evoking a risk of bankruptcy in the United States and the United Kingdom.
Cineworld said it is exploring several options to meet its cash requirement and potentially restructure its balance sheet through a deleveraging operation. This would result in a very significant dilution of existing Cineworld shares.
The group, founded by Steve Wiener in 1995, said it was in negotiations with stakeholders including lenders and legal and financial advisers.
Cineworld and Regal theaters around the world are open as usual, the company said.
(Report Yadarisa Shabong in Bangalore; French version Valentine Baldassari)
Copyright © 2022 Thomson Reuters