Cineworld to file for administration as part of restructuring plan - Sky News (updated)
13/06/2023 18:27
(Updates with Cineworld's response in paragraph 4; adds details
in paragraphs 3 & 5, background in 6 & 7)
June 13 (Reuters) - British cinema chain operator
Cineworld CINE.L is preparing to file for administration as a
part of a financial restructuring plan, Sky News reported on
Tuesday.
The company is lining up AlixPartners to act as
administrator to help with the transfer of ownership to its
lenders, the report added.
An announcement is expected to be made by the end of next
week, a source told Sky News.
Cineworld declined to comment to a Reuters request, while
AlixPartners could not be immediately reached.
The insolvency process for the holding company will not
impact Cineworld's business operations, the Sky News report
added.
In May, the world's second largest movie theatre chain
operator after AMC Entertainment AMC.N , had said that it
expects to emerge from Chapter 11 bankruptcy protection in July,
adding that its proposed debt restructuring had the backing of
most of its lenders.
The company had filed for U.S. bankruptcy protection in
September hoping to restructure its massive debt.
(Reporting by Shreyaa Narayanan in Bengaluru; Editing by
Shailesh Kuber)
((Shreyaa.Narayanan@thomsonreuters.com;))