Embattled cinema chain Cineworld is set to file for administration in the UK next month as part of plans to reduce its debt pile.
However, the operator said in a trading update earlier today that it will continue to operate its cinemas “without interruption”, including those under its Regal, Cinema City, Picturehouse and Planet brands.
Under the administration, the parent company will transfer its assets to a wholly-owned subsidiary called Crown UK Holdco.
A newly-incorporated vehicle controlled by the group’s lenders will become the sole owner of Crown.
The operator is aiming to reduce its debt by around $4.5bn (£3.5bn) through the restructuring, as well as raise $800m through a rights offering and secure almost $1.5bn in new debt financing.
The chain filed for Chapter 11 bankruptcy in September last year, with an $8.8bn debt and lease liability burden.
Cineworld said the proposed restructuring will not provide any recovery for existing equity holders. It will also suspend trading on the London Stock Exchange next month.
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