Cineworld, the world’s second largest movie theatre chain operator, is set to emerge from Chapter 11 bankruptcy protection in July. The British cinema chain operator has received the backing of most of its lenders for its proposed debt restructuring plan.
The company had scrapped plans to sell some or all its businesses after failing to find a buyer and instead opted for a restructuring plan that will wipe out its shareholders. Shares in the company have lost more than 99% of their value since hitting a peak of 310 pence six years ago.
The pandemic shut its cinemas and halted releases of blockbluster movies, and its abandoned plan to take over rival Cineplex has triggered a C$1.23 billion damages claim. Earlier this month, Cineworld received U.S. court approval to raise $2.26 billion as part of its bid to exit bankruptcy.
The restructuring plan has received the support of lenders holding about 99% of its legacy debt facilities and at least 69% of its outstanding indebtedness. Cineworld is scheduled to seek final court approval of its bankruptcy restructuring on June 12.