CINEWORLD has secured $785m from existing lenders after the company filed for bankruptcy in the United States earlier this week.
This means that the chain will now have more time to reduce its debt and meet ongoing obligations to vendors, suppliers and employees. Cineworld cinemas across the UK and worldwide will remain open and operate as normal.
This will come as welcome news to the chain, who as of recently had only $4 million in cash. Without the recent ruling, which was approved by Judge Marvin Isgur at an extensive hearing, the business would likely have closed entirely – leaving thousands without employment.
Following this development, shares in Cineworld rose 7.6%, to 4.4p. Within minutes of initial reports by the Wall Street Journal of Cineworld filing for bankruptcy, shares plummeted by two-thirds, from 20p to 2p.
READ MORE: Canadian filmmaker on why Glasgow is such a renowned city for cinema
Prior to the pandemic it was trading at £1.97.
CEO Mooky Greidinger said: “Today’s approval of our requested ‘first day’ relief is a positive step forward for the Group and our restructuring efforts.
“As we position Cineworld for long-term growth, through this Chapter 11 process and beyond, we remain steadfast in our commitment to providing our guests with the most memorable moviegoing experiences and maintaining our long-standing relationships with our business partners.”
Cineworld operates 747 theaters and 9139 screens globally, with 26 of these theatres (and 93 screens) being based in the UK.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here