Primary amusement games site operator Cineworld is close to bankruptcy.
The UK-based operator Cineworld, which also has movie theatres across Europe and the US, has signalled that admissions are likely to remain lower than pre-pandemic levels for two years.
The owner of Regal Cinemas is attempting to refocus its finances while it is under bankruptcy protection in the US. It is the second-largest cinema chain in the world following AMC Entertainment and it filed for bankruptcy last month to restructure its debt.
With admissions running below expectations in the third quarter of its year, Cineworld is hoping that some relief might come with some blockbusters due for release in the final quarter of the year.
Cineworld went into debt to fund the purchase of Regal Entertainment in 2017 at a cost of $3.6bn, but it also faces a claim for damages after it pulled out of a $1.65bn takeover plan for Canada’s Cineplex.
It now has net debts of $8.81bn and its cash reserves have dwindled to $131m from $354m. It has secured loans totalling $785m, but it is less than half the financing it needs to continue to protect it from bankruptcy.
