Shares of Cineworld Group, the world’s second-biggest cinema chain, continued to fall today in trading on the London Stock Exchange. After news that the company is preparing to declare bankruptcy
As of 10:24 p.m. PST, Cineworld shares were down 23.10 percent to 3.13 pence, following slumping more than 60 percent on Friday.
Wall Street newspaper The Journal reported, citing sources, that Cineworld was preparing to declare bankruptcy. After experiencing severe problems since the outbreak of COVID-19
Cineworld, which has 9,000 sister theaters in 10 countries, suffered losses of $2.7 billion in 2020 amid the devastating coronavirus pandemic. This led to the closure of movie theaters to prevent the spread of the virus. and a loss of $566 million in 2021.
Additionally, Cineworld suffered $8.9 billion in debt at the end of 2021, while revenue was $1.8 billion.
The report states that Cineworld has been in discussions with attorneys from Kirkland & Ellis LLP as well as consultants from AlixPartners regarding the bankruptcy filing process.
It is speculated that Cineworld, a company listed on the London Stock Exchange. will file a petition with the United States Court under Section 11 for bankruptcy protection. including entering bankruptcy in the UK
The news comes following Cineworld had previously warned of a fall in theater attendance due to a shortage of blockbuster films to attract audiences. And it is expected that this situation will continue until November.
