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Cineworld scraps plans to sell businesses outside UK, Ireland and the US
https://www.whatjobs.com/news/united-kingdom/uk-business-news/cineworld-scraps-plans-to-sell-businesses-outside-uk-ireland-and-the-us
By Hugh Fort in UK Business News, posted April 18, 2023
Cineworld has scrapped a plan to sell its businesses outside the UK, Ireland and the US as the bids “did not meet the value level required by the group’s lenders".
The business is ridden with debt but has now given up on the sale of its businesses in Eastern Europe and Israel, called its "Rest of the World" division.
It said the proposals put forward by suitors “did not meet the value level required by the group’s lenders”.
READ MORE: Cineworld files for bankruptcy protection in the US after devastating pandemic losses
The decision follows the company's decision to ditch the sale process for its UK, Ireland and US earlier this month after failing to find a buyer.
A restructuring plan has since been launched to allow the company to reorganise its $5 billion (£4 billion) debt pile in order to exit the Chapter 11 bankruptcy during the first half of this year.
Cineworld filed for a Chapter 11 bankruptcy in the US last year, which meant it could reorganise its debts and assets to have a fresh start, while remaining in business.
But the group’s restructuring means shareholder investments would not be rescued.
The company’s “rest of the world” business covers Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel.
The division was not under the bankruptcy protection.
The recovery plans include cutting its debt mountain by around $4.53 billion (£3.6 billion) and raising $2.26 billion (£1.8 billion) in new funding.
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Cineworld has stressed the debt restructuring will not affect its 750 cinemas around the world, saying it will be “business as usual” across the sites.
It said: “Cineworld and its brands around the world – including Regal, Cinema City, Picturehouse and Planet – are continuing to welcome customers to cinemas as usual.
“The group continues to honour the terms of all existing customer membership programmes, including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the United Kingdom.”
Source: The Independent
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