Cineworld ‘open for business’ as it considers US bankruptcy filing – Business Live | Business

Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.

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Troubled cinema chain Cineworld has confirmed that it is considering filing for bankrupcy protection in the United States, as it looks to restructure its balance sheet and raise extra funds.

“,”elementId”:”0bc55c6c-2008-47cc-8967-b459bb4a4a45″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

In a statement to the City this morning, Cineworld says that its Cineworld and Regal theaters globally are open for business as usual while it considers various strategic options – including a possible voluntary Chapter 11 filing in the US, and similar measures in other jurisdictions.

“,”elementId”:”3ca10954-415e-43e4-a660-685c0d49956f”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The world’s second-largest cinema chain is struggling with near-term liquidity following the disruption of the pandemic, and a slower-than-hoped recovery in movie-going, which has left it with debts of more than $4.8bn (£4bn).

“,”elementId”:”af240cc5-9327-4c34-b4ea-aa08bcc8fc45″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The cost of living crunch has added to the leisure industry’s woes, as consumers are forced to cut back.

“,”elementId”:”e22f1571-c15e-4722-983d-59aef32ad8f6″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The company, which operates 751 sites in 10 countries including the Cineworld and Picturehouse chains in the UK, says there wouldn’t be any ‘significant impact’ on its staff if it filed for bankrupcy protection.

“,”elementId”:”fac409a0-656f-41dc-9064-f9caefc8be2c”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Cineworld says it is looking at options to raise “additional liquidity and potentially restructure its balance sheet through a comprehensive deleveraging transaction”.

“,”elementId”:”30077f86-61f4-404e-940d-bb8c5e68a667″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”

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Any such filing would be expected to allow the Group to access near-term liquidity and support the orderly implementation of a fully funded deleveraging transaction.

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Cineworld would expect to maintain its operations in the ordinary course until and following any filing and ultimately to continue its business over the longer term with no significant impact upon its employees.

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Cineworld employs around 45,000 peope worldwide, including more than 5,000 in the UK.

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Shareholders could see their stakes heavily diluted, Cineworld adds:

“,”elementId”:”cebd31c0-bdfd-4a23-9471-6e92e57f0ef9″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”

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As previously announced, any deleveraging transaction would, however, result in very significant dilution of existing equity interests in Cineworld.

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Cineworld’s evaluation of these strategic options remains ongoing. A further announcement will be made if and when appropriate.

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“,”elementId”:”ee74f672-f2d4-4877-bbb7-66066fcf1487″},{“_type”:”model.dotcomrendering.pageElements.TweetBlockElement”,”html”:”

Cineworld (#CINE) confirms market chat it's considering voluntary Chapter 11 in the US and similar measures in other jurisdictions. Shares crashed another 58% Friday to 4p.https://t.co/qrmeHefbUK

— Ian Conway (@SharesMagIan) August 22, 2022

\n”,”url”:”https://twitter.com/SharesMagIan/status/1561599015942328323″,”id”:”1561599015942328323″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”6b8b8fb4-05fe-4654-b282-1434c6938c80″},{“_type”:”model.dotcomrendering.pageElements.SubheadingBlockElement”,”html”:”

Also coming up today

“,”elementId”:”317c6638-ab78-4354-9d4a-859c9e1b8875″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Recession fears are knocking the oil price this morning. Brent crude has fallen over 1% to $95.45 per barrel, on concerns that aggressive US interest rate hikes will hurt an already-weak global economy, and knock demand for fuel.

“,”elementId”:”02f2eada-693f-4107-9f43-bb3e97eae5e6″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

European stock markets are set for a lower open, as investors await the Kansas City Fed’s two-day annual economic symposium, in Jackson Hole, Wyoming, at the end of the week.

“,”elementId”:”eba95de9-1240-45b0-9a93-b10050327dc8″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Federal Reserve Chair Jerome Powell will deliver his keynote address on Friday, and could signal how high U.S. borrowing costs may go and how long they will need to stay there to bring down soaring inflation.

“,”elementId”:”e25c1c71-2902-4180-96c1-214763277ff2″},{“_type”:”model.dotcomrendering.pageElements.TweetBlockElement”,”html”:”

European Opening Calls:#FTSE 7535 -0.21%#DAX 13505 -0.29%#CAC 6480 -0.25%#AEX 718 -0.23%#MIB 22486 -0.22%#IBEX 8311 -0.33%#OMX 2036 -0.10%#SMI 11157 +0.01%#STOXX 3719 -0.31%#IGOpeningCall

— IGSquawk (@IGSquawk) August 22, 2022

\n”,”url”:”https://twitter.com/IGSquawk/status/1561583534493822978″,”id”:”1561583534493822978″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”0d16c2fc-0f21-46fc-99e2-3eb7f4017150″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

UK barristers are waiting for the results of an all-out strike ballot for industrial action next month as part of a row with the Government over jobs and pay.

“,”elementId”:”44f16626-e1bb-4654-aaf5-e266e091de2f”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Members of the Criminal Bar Association (CBA) have been walking out on alternate weeks but have been balloted on an indefinite, uninterrupted strike that would start on September 5.

“,”elementId”:”02a63926-ed70-4d13-9ec7-4441f1f312e3″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The ballot closed at midnight on Sunday and the result is expected this morning.

“,”elementId”:”a838daf0-c7e0-46a6-bbfe-285f46e888e2″},{“_type”:”model.dotcomrendering.pageElements.SubheadingBlockElement”,”html”:”

The agenda

“,”elementId”:”00fe4994-3430-4fe7-9657-04c91388f507″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    \n

  • 11am BST: German Bundesbank’s monthly report

  • \n

  • 1.30pm BST: Chicago Fed National Activity Index for July

  • \n

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Key events

Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.

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Troubled cinema chain Cineworld has confirmed that it is considering filing for bankrupcy protection in the United States, as it looks to restructure its balance sheet and raise extra funds.

“,”elementId”:”0bc55c6c-2008-47cc-8967-b459bb4a4a45″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

In a statement to the City this morning, Cineworld says that its Cineworld and Regal theaters globally are open for business as usual while it considers various strategic options – including a possible voluntary Chapter 11 filing in the US, and similar measures in other jurisdictions.

“,”elementId”:”3ca10954-415e-43e4-a660-685c0d49956f”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The world’s second-largest cinema chain is struggling with near-term liquidity following the disruption of the pandemic, and a slower-than-hoped recovery in movie-going, which has left it with debts of more than $4.8bn (£4bn).

“,”elementId”:”af240cc5-9327-4c34-b4ea-aa08bcc8fc45″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The cost of living crunch has added to the leisure industry’s woes, as consumers are forced to cut back.

“,”elementId”:”e22f1571-c15e-4722-983d-59aef32ad8f6″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The company, which operates 751 sites in 10 countries including the Cineworld and Picturehouse chains in the UK, says there wouldn’t be any ‘significant impact’ on its staff if it filed for bankrupcy protection.

“,”elementId”:”fac409a0-656f-41dc-9064-f9caefc8be2c”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Cineworld says it is looking at options to raise “additional liquidity and potentially restructure its balance sheet through a comprehensive deleveraging transaction”.

“,”elementId”:”30077f86-61f4-404e-940d-bb8c5e68a667″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”

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Any such filing would be expected to allow the Group to access near-term liquidity and support the orderly implementation of a fully funded deleveraging transaction.

\n

Cineworld would expect to maintain its operations in the ordinary course until and following any filing and ultimately to continue its business over the longer term with no significant impact upon its employees.

\n

“,”elementId”:”d179af5d-6ea7-4c07-836c-ca7120d4f64b”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Cineworld employs around 45,000 peope worldwide, including more than 5,000 in the UK.

“,”elementId”:”2eb003bf-eeca-4c8e-9302-73b47329d94d”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Shareholders could see their stakes heavily diluted, Cineworld adds:

“,”elementId”:”cebd31c0-bdfd-4a23-9471-6e92e57f0ef9″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”

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As previously announced, any deleveraging transaction would, however, result in very significant dilution of existing equity interests in Cineworld.

\n

Cineworld’s evaluation of these strategic options remains ongoing. A further announcement will be made if and when appropriate.

\n

“,”elementId”:”ee74f672-f2d4-4877-bbb7-66066fcf1487″},{“_type”:”model.dotcomrendering.pageElements.TweetBlockElement”,”html”:”

Cineworld (#CINE) confirms market chat it's considering voluntary Chapter 11 in the US and similar measures in other jurisdictions. Shares crashed another 58% Friday to 4p.https://t.co/qrmeHefbUK

— Ian Conway (@SharesMagIan) August 22, 2022

\n”,”url”:”https://twitter.com/SharesMagIan/status/1561599015942328323″,”id”:”1561599015942328323″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”6b8b8fb4-05fe-4654-b282-1434c6938c80″},{“_type”:”model.dotcomrendering.pageElements.SubheadingBlockElement”,”html”:”

Also coming up today

“,”elementId”:”317c6638-ab78-4354-9d4a-859c9e1b8875″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Recession fears are knocking the oil price this morning. Brent crude has fallen over 1% to $95.45 per barrel, on concerns that aggressive US interest rate hikes will hurt an already-weak global economy, and knock demand for fuel.

“,”elementId”:”02f2eada-693f-4107-9f43-bb3e97eae5e6″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

European stock markets are set for a lower open, as investors await the Kansas City Fed’s two-day annual economic symposium, in Jackson Hole, Wyoming, at the end of the week.

“,”elementId”:”eba95de9-1240-45b0-9a93-b10050327dc8″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Federal Reserve Chair Jerome Powell will deliver his keynote address on Friday, and could signal how high U.S. borrowing costs may go and how long they will need to stay there to bring down soaring inflation.

“,”elementId”:”e25c1c71-2902-4180-96c1-214763277ff2″},{“_type”:”model.dotcomrendering.pageElements.TweetBlockElement”,”html”:”

European Opening Calls:#FTSE 7535 -0.21%#DAX 13505 -0.29%#CAC 6480 -0.25%#AEX 718 -0.23%#MIB 22486 -0.22%#IBEX 8311 -0.33%#OMX 2036 -0.10%#SMI 11157 +0.01%#STOXX 3719 -0.31%#IGOpeningCall

— IGSquawk (@IGSquawk) August 22, 2022

\n”,”url”:”https://twitter.com/IGSquawk/status/1561583534493822978″,”id”:”1561583534493822978″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”0d16c2fc-0f21-46fc-99e2-3eb7f4017150″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

UK barristers are waiting for the results of an all-out strike ballot for industrial action next month as part of a row with the Government over jobs and pay.

“,”elementId”:”44f16626-e1bb-4654-aaf5-e266e091de2f”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Members of the Criminal Bar Association (CBA) have been walking out on alternate weeks but have been balloted on an indefinite, uninterrupted strike that would start on September 5.

“,”elementId”:”02a63926-ed70-4d13-9ec7-4441f1f312e3″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The ballot closed at midnight on Sunday and the result is expected this morning.

“,”elementId”:”a838daf0-c7e0-46a6-bbfe-285f46e888e2″},{“_type”:”model.dotcomrendering.pageElements.SubheadingBlockElement”,”html”:”

The agenda

“,”elementId”:”00fe4994-3430-4fe7-9657-04c91388f507″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    \n

  • 11am BST: German Bundesbank’s monthly report

  • \n

  • 1.30pm BST: Chicago Fed National Activity Index for July

  • \n

“,”elementId”:”4b788bad-f4a2-48e1-b310-bcf3eba6c1b4″}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1661150683000,”blockCreatedOnDisplay”:”02.44 EDT”,”blockLastUpdated”:1661151287000,”blockLastUpdatedDisplay”:”02.54 EDT”,”blockFirstPublished”:1661150683000,”blockFirstPublishedDisplay”:”02.44 EDT”,”blockFirstPublishedDisplayNoTimezone”:”02.44″,”title”:”Introduction: Cineworld considering filing for US bankruptcy”,”contributors”:[],”primaryDateLine”:”Mon 22 Aug 2022 02.54 EDT”,”secondaryDateLine”:”First published on Mon 22 Aug 2022 02.44 EDT”}],”filterKeyEvents”:false,”id”:”key-events-carousel-mobile”}”>

Filters BETA

News that Cineworld could file for bankruptcy broke on Friday, sending its shares tumbling.

My colleague Mark Sweeney explained:

Cineworld, which faces paying almost $1 billion to exit a deal to buy Canadian rival Cineplex, reported a $493 million year-on-year increase in net debt to $4.8 billion at the end of 2021.

The group made a loss of $708 million last year. However, revenue doubled from $852 million to $1.8 billion, thanks to the latest James Bond and Spider-Man films. In 2020, the company reported a record loss of $3 billion.

“The firm will blame the lack of summer blockbusters as the reason for its sharp decline, but in reality its aggressive acquisition plan has taken on too much debt and this has always been a huge risk as interest rates rise,” said Walid Koodmani, chief market officer analyst at financial intermediary XTB.

Background: Cineworld is considering filing for bankruptcy in the US

Good morning and welcome to our ongoing coverage of business, the global economy and financial markets.

Troubled movie theater chain Cineworld confirmed that it is considering filing for bankruptcy protection in the United States as it seeks to restructure its balance sheet and raise additional funds.

In a statement to the city this morning, Cineworld says it is Cineworld and Royally Theaters worldwide are open for business as usual while they consider various strategic options – including possible voluntary ones Chapter 11 filing in the US and similar measures in other jurisdictions.

The world’s second-biggest movie theater chain is struggling with short-term liquidity after the pandemic shutdown and a slower-than-expected recovery in moviegoing left it with more than $4.8 billion (£4 billion) in debt.

The cost of living crisis has added to the leisure industry’s woes as consumers are forced to downsize.

The company, which operates 751 sites in 10 countries, including the UK’s Cineworld and Picturehouse chains, says there will be no “significant impact” on its staff if it files for bankruptcy protection.

Cineworld says it is looking at options to raise “additional liquidity and potentially restructure its balance sheet through an overall deleveraging transaction.”

Any such filing is expected to enable the Group to access short-term liquidity and to facilitate the due execution of a fully funded deleveraging transaction.

Cineworld would expect to maintain its operations in its normal course until and after any filing and ultimately continue its business in the longer term without significant impact on its employees.

Cineworld employs around 45,000 people worldwide, including more than 5,000 in the UK.

Shareholders could see their holdings heavily diluted, Cineworld added:

As previously announced, however, any deleveraging deal would result in a significant dilution of the existing equity holdings in Cineworld.

Cineworld’s evaluation of these strategic options is ongoing. A further announcement will be made if and when appropriate.

Cineworld (#CINE) confirms market chat it's considering voluntary Chapter 11 in the US and similar measures in other jurisdictions. Shares crashed another 58% Friday to 4p.https://t.co/qrmeHefbUK

— Ian Conway (@SharesMagIan) August 22, 2022

\n”,”url”:”https://twitter.com/SharesMagIan/status/1561599015942328323″,”id”:”1561599015942328323″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”bf019933-62ee-441f-a8b6-292aa66a7bf5″}}”>

Cineworld (#CINEMA) confirms to MarketChat that it is considering a voluntary Chapter 11 in the US and similar measures in other jurisdictions. Shares tumbled a further 58% by 4p on Friday.https://t.co/qrmeHefbUK

— Ian Conway (@SharesMagIan) August 22, 2022

Also due today

Recession fears are crashing the price of oil this morning. Brent crude fell more than 1 percent to $95.45 a barrel on concerns that aggressive U.S. interest rate hikes will hurt an already weak global economy and knock down demand for the fuel.

European stock markets are set for a lower openas investors await the Kansas City Federal Reserve’s two-day annual economic symposium in Jackson Hole, Wyoming, at the end of the week.

Federal Reserve Chairman Jerome Powell will deliver a keynote speech on Friday and could signal how high US borrowing costs can get and how long they will need to stay there to curb rising inflation.

European Opening Calls:#FTSE 7535 -0.21%#DAX 13505 -0.29%#CAC 6480 -0.25%#AEX 718 -0.23%#MIB 22486 -0.22%#IBEX 8311 -0.33%#OMX 2036 -0.10%#SMI 11157 +0.01%#STOXX 3719 -0.31%#IGOpeningCall

— IGSquawk (@IGSquawk) August 22, 2022

\n”,”url”:”https://twitter.com/IGSquawk/status/1561583534493822978″,”id”:”1561583534493822978″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”9859e4f0-66b0-4fe0-a357-938b645e7b7e”}}”/>

Solicitors in the UK are awaiting the results of a full strike vote on strike action next month as part of a dispute with the government over jobs and pay.

Members of the Criminal Bar Association (CBA) are walking out in the coming weeks but have been voted in for an indefinite, continuous strike which will start on September 5.

Voting closed at midnight on Sunday and the result is expected this morning.

The agenda

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