Regal-owner The second-largest movie theatre chain in the world, Cineworld, has dismissed rumors that it has been in contact with AMC, the biggest chain in the world, about selling its holdings. Additionally, Cineworld stated that it would prefer to sell the firm as a whole instead of breaking it apart.
In addition to denying it had spoken with AMC directly, Cineworld claimed to “understand” that its lenders nor their advisors had participated in conversations with AMC.
Following preliminary discussions with several lenders, AMC announced last month that it was no longer in discussions to purchase some cinemas held by Cineworld.
Following its filing for Chapter 11 bankruptcy on September 7, Cineworld stated it has been in discussions with “important stakeholders” to create a reorganization plan to “maximize value for the benefit of moviegoers and all other stakeholders.” These conversations are still being had.
The firm stated that in addition to creating a strategy to restructure the group’s capital structure, it will “conduct a marketing process” to increase the value of its assets that is “focused on propositions for the group as a whole.” The business announced it would get in touch with potential customers this month.
A separate marketing campaign for the sale of Cineworld’s assets on an individual basis “has not been launched and is not intended to be initiated,” according to Cineworld.
Any sale or reorganization “would result in a very large dilution of existing equity holdings in Cineworld,” the statement read.
After abandoning its offer to acquire Canadian cinema chain Cineplex, which left the firm with a $1 billion debt to compensate for the lost opportunity, Cineworld’s problems began.