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Group recordsdata restructuring plan in U.S. courtroom
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Phrases will successfully wipe out present shareholders
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Shares down 14% at all-time low of 1.5 pence
(Provides element, background, shares)
April 11 (Reuters) – Cineworld stated on Tuesday it had filed a reorganisation plan in a Texas chapter courtroom that can successfully wipe out present shareholdings, sending its inventory to an all-time low.
The submitting formalises a deal laid out on April 3 that features plans to chop debt by about $4.53 billion and lift $2.26 billion in funds to emerge from chapter. It doesn’t present for any restoration for its present shareholders, the group stated.
Shares on the planet’s second-largest cinema chain operator fell to 1.5 pence on Tuesday, and have misplaced greater than 99% because it listed in 2007.
Cineworld, which positioned a majority of its enterprise underneath U.S. Chapter 11 chapter safety in September, final week dropped plans to promote its companies within the U.S., the UK, and Eire after failing to discover a purchaser.
The group’s chapter 11 firms are searching for to substantiate the plan on an “expeditious timeline”, Cineworld stated, including that it continues to function its world enterprise and cinemas as regular with out interruption.
The plan filed with the USA Chapter Court docket for the Southern District of Texas, Houston Division, is but to be accepted.
Cineworld, which expects to emerge from Chapter 11 within the first half of 2023, stated any transaction ensuing from the advertising and marketing course of might delay emergence past that time. (Reporting by Radhika Anilkumar in Bengaluru; Modifying by Uttaresh Venkateshwaran and Jan Harvey)
