The stricken cinema chain is lining up AlixPartners to act as manager of its listed holding company with an announcement likely to be made this week, Sky News understands.
By means of Mark Kleinman, city editor @MarkKleinmanSky
Tuesday, June 13, 2023 6:04 PM, UK
Cineworld’s London-listed holding company is preparing to file for administration as part of a comprehensive financial restructuring that will wipe out its shareholders.
Sky News understands that the multinational cinema operator is lining up AlixPartners to act as trustee to help secure a transfer of ownership to its backers.
According to a source, an announcement is expected to be made late next week.
Cineworld operates from 128 UK locations, according to a spokesman, and employs thousands of people.
UK operations will not be affected by the holding company’s insolvency process, insiders said.
The restructuring will reduce Cineworld’s debt burden by $4.5 billion and be accompanied by an $800 million rights offering to put the company on a sustainable financial footing, according to a statement in April.
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Cineworld exits bankruptcy in July
Cineworld ends plan to sell its UK, US and Ireland operations
Cineworld has been in Chapter 11 bankruptcy protection for months, a process it plans to end soon.
As part of the lenders’ move to take control of the company, they recruit a new board of directors for the group, including a CEO.
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However, media speculation that the front-runner for the job is David Ownby, a former executive at Regal Cinemas, is believed to be wrong.
A Cineworld spokesperson declined to comment.
