Cineworld Group announced on Monday its expectation to cancel its listing and share trading. The London-based cinema company’s proposed restructuring aims to reduce indebtedness by approximately $4.53 billion, raise $800 million, and provide $1.46 billion in new debt financing. The plan intends to allow the group’s business to emerge from Chapter 11 bankruptcy processes, but no rescue for Cineworld Group PLC itself is expected.
Once appointed, administrators will transfer substantially all of the parent company’s assets to wholly-owned subsidiary Crown UK Holdco Ltd. Following this, a newly incorporated debtors-controlled company will become the sole owner of Crown. However, the proposed restructuring does not provide for any recovery for holders of Cineworld’s existing equity interests.
The listing of the company’s ordinary shares and admission of trading to the London stock market is expected to be suspended shortly after any decision to apply for administrators. The cancellation of such listing and share trading will follow on the next day. Despite this, Cineworld expects to emerge from Chapter 11 bankruptcy in July.
While undergoing restructuring, both Cineworld’s business and cinemas have remained operational.
