Cineworld (LON: CINE) shares tumbled further on Tuesday after the company filed a plan of reorganisation with the United States Bankruptcy Court for the Southern District of Texas, Houston Division.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
CINE is down 16% at the time of writing, adding to its massive 95% decline in the last 12 months.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Open a UK Investment Account: Shares, ISAs, Managed Portfolio
Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.
IG
View Offers
Empfohlener Broker
Multi Asset Platform
In September, the world’s second-largest cinema chain operator placed the majority of its business under US Chapter 11 bankruptcy protection. Last week, Cineworld ditched plans to sell its UK, US, and Ireland business after it failed to find a buyer.
Top Broker Recommendation
- IG Top-tier regulation – Read our Review
- eToro Wide range of instruments available to trade – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The company also proposed a new debt deal which includes a $1.46 billion loan facility and a new share offering of $800 million, giving creditors a 100% stake in the company. Cineworld revealed the deal will slash its debts by $4.53 billion, allowing it to stay in business.
Cineworld said on Tuesday that its plan is backed by lenders holding and controlling approximately 83% of the company’s term loans due 2025 and 2026 and revolving credit facility due 2023.
In addition, the proposed restructuring does not provide for any recovery for holders of Cineworld’s existing equity interests.
Cineworld expects to emerge from the Chapter 11 cases during the first half of 2023, although it warned that any sale transaction resulting from the marketing process could delay its emergence beyond the first half.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.