Cineworld yet to receive any all-cash offers for business

The business did, however, add that any sale transaction resulting from the marketing process – among other things – may delay its emergence beyond the first half of this year.  

Following the announcement that it has failed to receive any all-cash offers for its firms in the US and UK, shares in the London-listed group plunged slumping by 46% to 2.1p in early trading on Friday (24 February), before recovering to 21% down at 3.2p.  

And while potential buyers have expressed “some strategic interest” for its full business, they’ve mainly been for its theatres in central and eastern Europe and Israel.  

The second-largest cinema chain in the world, the business initially filed the Chapter 11 in September with less than $4m in cash in hand, with its struggles coming from a lack of blockbusters and weaker-than-expected sales.

During its restructuring process, Cineworld is continuing to run its global business and cinemas as usual without interruption.  

In its latest update, the company has also said the discussions between it and some of its stakeholders regarding a potential plan are progressing.  

It added: “Whilst the discussions suggest that there is a route to the company emerging from the Chapter 11 cases, in light of the level of existing debt that is expected to be released under any plan, the company does not believe that there will be sufficient creditor support for a plan that contemplates any recovery for equity interests, and it is therefore not expected at this time that any plan will provide any recovery for holders of Cineworld’s existing equity interests.”