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The
world's second-largest cinema chain operator behind AMC
Entertainment placed the majority of the business under U.S.
Chapter 11 bankruptcy protection in September.
Under a new tentative deal with lenders it said it aimed to
reduce debt by about $4.53 billion, mainly through creditors
getting equity in a reorganised group.
It had net debt of $8.81 billion including lease liabilities as
of June 2022.
The plan also includes raising $2.26 billion to emerge from
bankruptcy this year.
"This agreement with our lenders represents a
'vote-of-confidence' in our business and significantly advances
Cineworld towards achieving its long-term strategy in a changing
entertainment environment," CEO Mooky Greidinger said in a
statement.
"Cineworld has determined that, absent an all-cash bid
significantly in excess of the value established under the
proposed restructuring, the marketing process as it relates to
the Group's business in the US, the UK and Ireland will be
terminated," it said in a statement.
The company said it would continue to consider proposals for the
sale of its 'Rest of World' business, which accounted for about
13% of its revenue in 2021 and comprises operations in Poland,
the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and
Israel.
Private equity firm CVC Capital Partners and activist investor
Elliott Management last month proposed separate takeover bids
for its eastern Europe and Israeli operations, Sky News
reported.
Shares in the London-listed company are down more than 99% from
an all-time high hit in 2017.
On Monday they tumbled as much as 38% to 1.8 pence in early
trade.
The company reiterated that shareholders will be wiped out under
its restructuring plans.
(Reporting by Aby Jose Koilparambil and Yadarisa Shabong in
Bengaluru; editing by Louise Heavens and Jason Neely)
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