WSJ: Cineworld 'preparing to file for bankruptcy in US' 

The cinemas owner, which operates in 10 countries, including the US, Poland, Ireland, and Britain, had earlier this week warned a lack of big-budget movies was hitting admissions, complicating efforts to cut debt. 

Cineworld, the world's second largest cinema chain operator, is preparing to file for bankruptcy, the Wall Street Journal reported on Friday.

The owner had only this week warned that a lack of blockbusters would hit its liquidity in the near term. 

Shares in the London-listed company slumped more than 81% to a record low after the WSJ said Cineworld is expected to file a chapter 11 petition in the US and is also considering insolvency proceedings in the UK. 

The cinemas owner, which operates in 10 countries, including the US, Poland, Ireland, and Britain, had earlier this week warned a lack of big-budget movies was hitting admissions, complicating efforts to cut debt. 

"We don’t have anything to add beyond the statement we made on Wednesday," a spokesperson said. Net debt stood at $8.9bn (€8.8bn), including lease liabilities of $4.84m, at the end of 2021, with cash and restricted cash of $354.3m. 

Cineworld is also facing payment obligations to former shareholders of its US division Regal. It also faces a potential multimillion-dollar fine in a dispute with Canada's Cineplex. 

Refinitiv calculations assign Cineworld a combined credit score of 1, indicating it is highly likely to default in the next year. Cineworld has engaged lawyers and consultants to advise on the bankruptcy process, the WSJ said. 

Reuters