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Cineworld to continue operations despite UK administration

By Nagasunder in UK Business News, posted June 26, 2023

Struggling cinema chain Cineworld has announced its screens will remain open despite its plans to file for administration in the UK.

The decision is part of a larger restructuring plan for the world's second-largest cinema chain, resulting in the suspension of its shares.

Last year, the company sought bankruptcy protection in the US due to mounting debts of $5 billion.

However, Cineworld emphasized its cinemas would continue to operate without interruption.

It has moved to assure customers its global business, including brands like Regal, Cinema City, Picturehouse, and Planet, would welcome visitors as usual.

The restructuring plan aims to enable Cineworld to emerge from bankruptcy protection in July.

It involves reducing its debts by approximately $4.5 billion and raising $800 million in fresh funds.

By implementing these financial measures, the company intends to alleviate the financial burdens it faced during the pandemic.

Like other cinema chains, Cineworld, which employs over 28,000 people worldwide, experienced significant setbacks due to the global health crisis.

The industry was severely impacted as theatres faced prolonged closures during lockdowns or operated with limited capacity to comply with social distancing measures.

Additionally, cinemas face fierce competition from streaming services, further adding to the challenges they confront.

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Earlier this year, Cineworld abandoned its plans to sell its businesses in the US, UK, and Ireland after failing to find a suitable buyer.

Despite the company's recent difficulties, it remains committed to operating its cinemas and navigating through this challenging period.

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