Troubled Cineworld to focus on sale of entire group      

World’s second-largest cinema group will woo other buyers after AMC Entertainment quit talks to buy Cineworld theatres

Cineworld filed for US bankruptcy protection in September after it was battered by Covid-related restrictions and shutdowns. File picture

Cineworld will focus on a sale of the group as a whole rather than individual assets, the British cinema operator said, sending the troubled company’s shares lower.

The world’s second-largest cinema group filed for US bankruptcy protection in September to try to restructure its debt and strengthen its balance sheet as the industry navigates a bumpy road to recovery after Covid-related restrictions and shutdowns battered the sector.

The company, the finances of which were also bled by aggressive expansion including a move into the US, has warned that a restructuring or sale will result in significant dilution of equity interests with no guarantee of recovery for existing investors.

“Shareholders have been told on numerous occasions that their investment could be significantly diluted... so the situation is more about getting back pennies in the pound rather than waiting for a big payday,” Russ Mould investment director AJ Bell said in a research note.

The company expects to begin approaching potential buyers this month. Global market leader AMC Entertainment last month said it was no longer in talks to buy Cineworld theatres. Cineworld forecast in September that admissions would remain below pre-pandemic levels over the next two years.

• Reuters