After failing to find a buyer for its businesses in the United States, the United Kingdom, and Ireland, Cineworld has announced that it will raise additional funding. After announcing that the move would be canceled, the troubled cinema chain’s share price dropped by nearly 30%. Cineworld also stated that it had reached an agreement with its lenders to restructure its substantial debt and avoid bankruptcy.
Cineworld, like other cinemas, was severely affected by the pandemic. Due to social distancing regulations, numerous theaters were forced to operate at a reduced capacity or close for extended periods during lockdowns. Additionally, streaming services continue to pose a significant challenge to them.
In August of last year, Cineworld, the second-largest cinema chain in the world, filed for bankruptcy in the United States due to its burden of $5 billion in debt. The company, which has 740 locations worldwide and employs over 28,000 people, stated that it now intends to obtain $2.26 billion in additional funding.
Cineworld’s CEO Mooky Greidinger said the arrangement addressed a demonstration of positive support in the business and moved the organization towards accomplishing its drawn-out procedure in a changing diversion climate.
The company stated that it would continue to consider offers for the sale of its business outside of the United States, the United Kingdom, and Ireland. When Cineworld and its rival AMC, which owns the Odeon Cinemas chain, criticized Universal Pictures for releasing Trolls, a dispute erupted in 2020: World Visit online when films had to close on account of COVID-19.
After that, Cineworld and Warner Bros. agreed to show movies in theaters before they were streamed online. Cinema chains have seen a large number of people return to see the most recent Hollywood blockbusters since lockdown restrictions were lifted.