Creditors call for Vue to buy out Cineworld

Cineworld’s creditors have contacted rival Vue about a possible sale as part of efforts to bail out the company.

Advisors have approached Vue and at least 30 other potential buyers since early December.

Cineworld filed for bankruptcy protection in the US last year. Non-binding bids for Cineworld are expected by February 16.

Each sale includes the Cineworld and Picturehouse chains.

The industry has been in turmoil since Covid forced venues to close for months.

On Thursday night, Vue said it had successfully refinanced its own company and secured £75 million in newly available funds.

An industry source said the debt restructuring had put Vue back on a firm footing and made it one of the “few players able to invest in growth.”

But the problems facing Cineworld are far greater as it is weighed down by £4 billion in debt.

Any potential deal will also inevitably raise questions about the future of chief executive Mooky Greidinger, who was recently convicted of a criminal offense by a court in Israel.

Earlier this month, Cineworld denied it had had any talks with Odeon owner AMC about selling individual sites. The UK-listed company would focus on selling the entire business, rather than talking to buyers about individual assets.

The company is still traded on the London Stock Exchange, but shares are down 90 per cent to less than 4 pence over the past year.

Vue and Cineworld declined to comment.