Major update on cinema chain’s future revealed after it filed for bankruptcy

A major update in the future of cinema chain Cineworld has been revealed after it filed for bankruptcy.

The company has said it expects to emerge from bankruptcy protection in July after receiving backing from backers.

It has said it will continue to run its locations ‘without interruption’ and ‘as usual’.

A statement from the world’s second largest cinema chain read: “The group continues to honor the terms and conditions of all existing customer membership programs, including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the UK.”

It also said it was moving forward with a plan to restructure its mountain of debt, which currently stands at around £4 billion.

It comes after the world’s second-largest movie theater chain filed for Chapter 11 bankruptcy in the US last year due to massive debts and low attendance.

A Chapter 11 bankruptcy case refers to when the debtor remains in possession of the business and can continue to operate normally while reorganizing its debts and assets.

It can even borrow more money, with court approval.

Initially, Cineworld, which has 129 cinemas in the UK and Ireland, appeared to be in jeopardy after it filed for bankruptcy in the US.

However, it has since announced it would raise £1.8bn in new funding to stay in business.

The company has said it plans to open three more of its Picturehouse locations in Chester, Ealing and Epsom.

Over the course of the past five years, the company’s share price has plummeted by nearly 99% after being hit particularly hard during the pandemic when it was forced to close its cinema doors.

The increase in the number of people using subscription services such as Netflix and Disney+ has also hampered business.

Cineworld employs 28,000 people worldwide and operates in 10 countries.