Cineworld screens to stay open as firm files for administration in rescue plan that will see shareholders wiped out
Troubled movie theatre chain Cineworld will file for administration in the UK as part of a rescue plan that will wipe out shareholders.
The debt-riddled company, which entered bankruptcy protection in the US last year as it battled to recover from the pandemic, expects to appoint administrators in Britain next month.
That will put it in the hands of its creditors and leave shareholders with nothing – and trigger a windfall for executives, who are set to walk away with tens of millions of pounds.
Cineworld said its 128 UK cinemas would stay open amid the release of blockbusters including Barbie, starring Margot Robbie, Indiana Jones and The Dial of Destiny, and historical drama Oppenheimer.
Rescue deal: Cineworld said its 128 UK cinemas would stay open amid the release of blockbusters including Barbie, starring Margot Robbie (pictured)
The rescue plan will see the company’s shares suspended and eventually delisted from the London Stock Exchange after plunging over 99 per cent over the last five years.
Shares fell 24.3 per cent, or 0.18p, to 0.55p yesterday. In May 2017, they were 311p.
Cineworld has a revival plan with which it hopes to cut debts of nearly £4billion. It is aiming to raise £630million and agree debt financing of £1.1billion.
This will end its long-standing relationship with the Greidinger family who have run it since 2014.
Chief executive Moshe ‘Mooky’ Greidinger and his deputy, brother Israel Greidinger, are among several executives set to take home nearly £28million as part of a deal to leave.
Finance head Nisan Cohen and chief commercial officer Renana Teperberg are also expected to receive payments in the next 12 months as part of a transition agreement.