Cineworld shares halve as cinema chain enters rescue talks
Business / Fri 19th Aug 2022 am31 10:29am
CINEWORLD’S market value more than halved after the world’s second-largest cinema chain said it was in talks with stakeholders about a financial rescue package, blaming a lack of blockbuster films for lower-than-expected admissions.
The London-listed company, which has run up debt of more than $4.8bn after losses soared during the pandemic, said despite the success of hits such as Top Gun: Maverick, starring Tom Cruise, not enough films were hitting cinemas.
In a stock exchange statement, Cineworld said it was in “active discussions with various stakeholders” and evaluating strategic options to obtain additional liquidity and potentially restructure its balance sheet to reduce debt. “Any deleveraging transaction will likely result in very significant dilution of existing equity interests in Cineworld,” the chain warned.
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