Cineworld to apply for administration in UK

(Sharecast News) - UK cinema chain Cineworld on Monday said it was applying for administration as part of its proposed restructuring plan.

The plan would involve the release of about $4.53bn of the group's funded debt, execution of a rights offering to raise $800m, and provision of $1.46bn in new debt financing, the company said in a statement.

Cineworld filed for US bankruptcy protection in September, hoping to restructure its massive $5bn debt burden as it emerged from the Covid-19 pandemic.

Throughout the bankruptcy arrangement, the cinemas in the chain operated as normal and in April Cineworld ended plans to sell its UK, US and Ireland businesses.

The company on Monday said it still expects to emerge from Chapter 11 bankruptcy in July.

Reporting by Frank Prenesti for Sharecast.com