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Cineworld’s holding company set to file for administration in financial restructuring

By Nagasunder in UK Business & Employment News, posted June 14, 2023

Cineworld's holding company is preparing to file for administration as part of a comprehensive financial restructuring that will result in the complete elimination of its shareholders.

Sources indicate AlixPartners is being lined up as the administrator to facilitate a transfer of ownership to the company's lenders.

An official announcement is anticipated by the end of this week.

Cineworld currently operates from 128 locations across the UK, employing a significant number of people .

However, it has clarified the insolvency proceedings of the holding company will not have an impact on its British operations.

The restructuring initiative aims to reduce Cineworld's debt by $4.5 billion and will be accompanied by an $800 million rights issue to establish the company on a sustainable financial path, as outlined in an April statement.

Cineworld has been under Chapter 11 bankruptcy protection for several months, and it plans to conclude this process soon.

In conjunction with the lenders' plan to assume control of the business, they are in the process of assembling a new board for the group, including a new CEO.

However, media speculation suggesting David Ownby, a former executive at Regal Cinemas, is the frontrunner for the position is reportedly incorrect.

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A spokesperson for Cineworld declined to comment on the matter.

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