Cineworld denies talks with AMC over cinema sales

Late last year, there were reports that the cinema chain – which entered Chapter 11 bankruptcy proceedings in September 2022 – were looking to offload some of its cinemas in the US and Europe to AMC Entertainment Holdings.  

It said: “In light of recent media reports, Cineworld would like to clarify that neither it nor its advisers have participated in discussions with AMC Entertainment Holdings Inc regarding the sale of any of its cinema assets. Cineworld also understands that neither the ad hoc group of lenders under the Group’s 2018 credit facility nor its advisers were party to discussions with AMC.” 

Outlining the work that is ongoing, it has said that – parallel with developing a plan to restructure its capital structure – it will be running a “marketing process” which will see it look to sell the whole business, rather than seeking buyers for the individual assets it owns. It expects to begin reaching out to potential parties this month. 

Cineworld has been struggling to recover from restrictions caused by Covid-19, with lockdowns – which forced most of its 751 sites to close – contributing to a $708m (592m) loss last year and the accumulation of $4.8bn in debts.  

Prior to the pandemic, the firm acquired Regal Cinemas for $3.6bn (£2.7bn) and agreed to pay £1.5bn for Cineplex before backing out of the deal in 2020 – citing “material adverse effect and breaches” by the entertainment brand. A judge in Ontario, however, ordered Cineworld to pay £720m in damage to the Canadian business for breaching obligations.