Cineworld warns shareholders of wipeout
STORY: Cineworld failed to find a buyer for the whole of the company.
And on Friday (February 24) it warned shareholders the value of their equity could be wiped out.
That as the world's second largest cinema chain tries to exit from Chapter 11 bankruptcy protection, after it was battered by lockdowns and a lack of big blockbusters.
Cineworld said it received initial proposals from a number of counterparties, but none offered an all-cash bid for the entire company.
One lawyer for the chain said no bid came near the $6 billion of secured indebtedness on the firm's balance sheet.
Cineworld said talks with some stakeholders about a possible plan for reorganization were ongoing.
That was while discussion continued over a potential sale of assets.
The company said neither option would see shareholders regain their equity interest.
Shares plummeted over 30% on Friday morning.
They are 99% off their peak from just under six years ago.
Cineworld expects to leave Chapter 11 bankruptcy in the first half of this year.
It has proposed April 10 as a deadline for final bids.
And has also faced a fallout with investors in U.S. chain Regal Entertainment, which it took over in 2017,
And legal claims over its failed takeover of Canada's Cineplex.