CINEWORLD yesterday said it is set to file for administration and suspend trading on the London Stock Exchange next month as part of a major bankruptcy restructuring plan.

In a statement yesterday, the cinema firm said its proposed restructuring would involve calling in administrators and could release approximately $4.53bn (£3.56bn) of its funded indebtedness, a rights offering to raise $800m and the provision of $1.46bn in new debt financing.

Bosses said administrators would shift all its assets into the ownership of a wholly-owned subsidiary called Crown. A newly incorporated company controlled by the group's lenders will become the sole owner of Crown, with Cineworld Group ceasing to have any interest in

Crown or the rest of the group.

"The proposed restructuring, when implemented, will transform the group's balance sheet and provide it with significant additional liquidity to fund its long-term strategy," Cineworld said.

The firm said that as a consequence of its administration, the trading of its shares on the London Stock Exchange's main market for listed securities will be suspended next month.

Shareholders are set to be wiped out by the arrangements, with the firm confirming it would "not provide for any recovery for holders of Cineworld's existing equity interests".

Cinemas will remain open.

Cineworld said: "The group and its brands around the world - including Regal, Cinema City, Picturehouse and Planet - are continuing to welcome customers to cinemas as usual."

(c) 2023 City A.M., source Newspaper