Cineworld Abandons Plan to Sell Business Outside UK, US, and Ireland

Cineworld (LON: CINE) said Tuesday that it has halted efforts to sell its ‘Rest of World’ business (outside of the United States, the United Kingdom, and Ireland).

The struggling cinema chain, which filed for bankruptcy in the US last August, received proposals for its RoW Business from several prospective counterparties, but they “did not meet the value level required by the Group’s lenders,” the company said in its statement.

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Cineworld said it will continue to move forward with its debt restructuring plan. It was also forced to stop the sale process of its UK, US, and Ireland businesses in early April after failing to find a buyer.

The London-listed firm’s recently announced debt restructuring plan will wipe out shareholders in a bid to reduce its debt pile and exit bankruptcy. Last week it filed the plan of reorganisation with the United States Bankruptcy Court for the Southern District of Texas, Houston Division.

Cineworld expects to emerge from the Chapter 11 cases during the first half of 2023. 

Cineworld shares are up over 7% Tuesday.