Cineworld Files for Bankruptcy in Bid to Cut $5 Billion Debt

Cineworld Group Plc filed for bankruptcy in Texas in an effort to tame its $5 billion debt pile, Bloomberg News reported. The UK-based movie theater chain, which draws most of its revenues from the U.S. after the acquisition of Regal Cinemas in 2018, yesterday filed for chapter 11 protection. Cineworld has commitments for $1.94 billion of bankruptcy financing lined up from existing secured lenders, the company said in a statement. The company’s management and board of directors will remain in control of the business. The company expects to “significantly” slash its debt load with the support of its lenders in chapter 11, according to the statement. It’s also planning to renegotiate its leases with US landlords and “pursue a real estate optimization strategy,” it said. Cineworld is the second-largest movie theater chain, with more than 9,000 screens across 747 locations. Read more.