Uncategorized

Abandon Hope, Cineworld Tells Shareholders

The COVID-19 pandemic has caused cinemas around the World to close. Cineworld has been particularly badly affected in the United Kingdom where every movie theatre was required to close. This picture depicts the closed theatre waiting to reopen.

Cineworld (LON:CINE) shareholders are set to be wiped out completely after talks to bring the company out of bankruptcy failed to attract enough interest from buyers. The owner of the Regal chain of cinemas, which collapsed under the weight of its debts last year, said it had failed to persuade potential buyers to make a bid for the whole business, and that its assets are now likely to be broken up piecemeal to satisfy creditors after receiving non-binding bids for them. In a statement to the London Stock Exchange, Cineworld said: “The Company is reviewing such proposals in conjunction with its advisers and key stakeholders and, whilst no decision has been made as to whether to pursue a sale transaction, and the terms of any such transaction remain uncertain, based on the proposals received to date, it is not expected that any sale transaction will provide any recovery for the holders of the Company’s equity interests.” The company said it still sees a way out of the Chapter 11 bankruptcy process in the U.S. that is currently allowing it to continue trading, but indicated that its creditors will have to exchange at least a part of their claims for equity, leaving no room for current shareholders.

Related posts
Uncategorized

Germany Leads Big Bond Rally As Inflation Finally Heads Down

Germany is leading the biggest rally in global bond markets since March’s banking rout as cooling…
Read more
Uncategorized

Asian Stocks Cautiously Higher As Debt Ceiling Bill Moves Forward

Most Asian stocks edged higher on Thursday, encouraged by progress towards averting a U.S. debt…
Read more
Uncategorized

Gold Edges Lower, Copper Slides On Disappointing Chinese Data

Gold prices crept lower on Wednesday as markets awaited more cues on the raising of the U.S. debt…
Read more
Newsletter
Become a Trendsetter
Sign up for Davenport’s Daily Digest and get the best of Davenport, tailored for you. [mc4wp_form id="729"]

Leave a Reply

Your email address will not be published. Required fields are marked *