Cineworld (CINE.L) announced on Tuesday that it had filed a reorganization plan in a Texas bankruptcy court and that it will successfully vanquish its existing stockholders, plunging its stocks to an all-time low.
The filing standardized a deal designed on April 3, which involves plans to reduce debt by nearly $4.53 billion and raise $2.26 billion in funds to arise from the failure. According to the group, it is unable to provide any recovery to its existing stakeholders.
Stocks of the world’s second-largest theater chain operator plummeted to 1.5 pence on Tuesday, having dwindled more than 99% since its initial public offering in 2007.
Cineworld, which placed a major portion of its business under U.S. Chapter 11 bankruptcy protection in September, gave up plans to sell its businesses in the U.S., UK, and Ireland last week after failing to find a buyer.
Cineworld claimed that the company’s chapter 11 businesses are attempting to finalize the strategy on a “preliminary timeline” and that it continues to operate its worldwide business and theaters as normal without disruption.
- Published By Team Timeswire