CINEWORLD has issued a big update on its future after announcing it would be filing for bankruptcy last year.
The cinema giant said today that it has been approached by a “number of” potential suitors.
Cineworld could come out of bankrupctyGetty – Contributor
However, none of them were willing to pay in cash to buy the whole business.
The company is currently in £5billion worth of debt.
This means that any deal to save the business could result in its shareholders being wiped out.
But Cineworld announced that it hopes to recover from bankruptcy protection before the middle of 2023.
It said: “The company has now received non-binding proposals from a number of potential transaction counterparties for some or all of the group’s business.
“The company is reviewing such proposals in conjunction with its advisers and key stakeholders and, whilst no decision has been made as to whether to pursue a sale transaction, and the terms of any such transaction remain uncertain, based on the proposals received to date, it is not expected that any sale transaction will provide any recovery for the holders of the company’s equity interests.”
Cineworld fell into bankruptcy last Autumn, putting 128 of its cinemas at risk.
It made the decision after struggling with attendance following the coronavirus pandemic, according to the Wall Street Journal.
At the time, the company hired lawyers and consultants to advise on the bankruptcy process.