Another British group, Vue Cinemas, is seeking to restructure its debt in court and transfer ownership from a pool of Canadian pension funds to its lenders.
Cineworld amassed a heavy debt load after buying Regal. Its adjusted earnings before interest, tax, amortisation and depreciation were just $US455 million in the last financial year, according to its latest annual report. It also faces nearly $US1 billion in damages to Canada’s Cineplex over a takeover bid that was aborted in 2020.
Chapter 11 bankruptcy allows a company to continue operating while it works out a plan to repay creditors. The company was also considering to start “ancillary proceedings” in other jurisdictions, Cineworld said in the statement.