On Tuesday, Cineworld Group PLC (OTC: CNNWQ) (OTC: CNWGQ) said it had filed a reorganization plan in a Texas bankruptcy court to dissolve existing shareholdings effectively.
The filing formalizes the cinema chain operator’s April 3 deal that includes plans to cut debt by about $4.53 billion and raise $2.26 billion to emerge from bankruptcy, Reuters reports.
The deal does not provide for any recovery for its existing shareholders, the group said.
Also Read: Elliott Management Reportedly Eyes Purchase Of Parts Of This Ailing AMC Theatres Rival
The AMC Entertainment Holdings, Inc (NYSE: AMC) rival, which placed most of its business under U.S. Chapter 11 bankruptcy protection in September, dropped plans to sell its businesses in the U.S., the U.K., and Ireland last week after failing to find a buyer.
The group’s Chapter 11 companies are seeking to confirm the plan on an “expeditious timeline,” Cineworld said, adding that it continues to operate its global business and cinemas as usual without interruption.
Cineworld, which expects to emerge from Chapter 11 in the first half of 2023, said any transaction resulting from the marketing process might delay emergence beyond that point.
Cineworld has over $5 billion in debt and faces a roughly $1 billion legal judgment from a failed merger with Canadian cinema chain Cineplex Inc.
Price Action: CNNWQ shares closed lower by 10.2% at $0.02 on Monday.
Photo via Wikimedia Commons
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This article AMC Britain Rival Cineworld Files Restructuring Plan in Bankruptcy Court, Shareholders to be Wiped Out originally appeared on Benzinga.com
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Source: https://finance.yahoo.com/news/amc-britain-rival-cineworld-files-132204175.html