Cineworld filed for Chapter 11 Bankruptcy protection in September 2022 after the effects of the fallout from COVID-19 impacted the cinema industry worldwide. However, they have recently denied sale talks.
More specifically, the cinema chain giant has denied any potential sales of its cinema assets to AMC Entertainment Holdings, the biggest theatre chain in the world and their direct competition. It came after AMC had mentioned they had talks with Cineworld over site acquisitions (believed to be the US) but the company went so far as to deny these talks publicly.
In a statement, Cineworld stated that any such sales of assets would result in a “significant dilution of existing equity interests”.
AMC buying Cineworld: True or false?
READ MORE: When Will Wednesday Season 2 Be Released?
At the same time, there’s no smoke without fire, and it seems an odd thing for one company to say, and for it to force Cineworld actually to come out and deny it is intriguing. The company also stated that as far as they understand, none of the “lenders” under their 2018 credit deal, nor their advisers have been “party to any discussions with AMC”.
However, by the end of January 2023, the company and its leadership will need to create and send out a proposal to its debtors and creditors. Whilst the company is looking at restructuring, they also are “in pursuit of a maximising value transaction for the group’s assets, as a whole”.
This would seem to indicate any sale for the group as a whole would actually not include the sale of Cineworld itself. The company has already shut down 23 sites so far and is now officially up for sale.
I am not sitting here for a year…
READ MORE: When Will Inside Man Season 2 Be Released?
The judge presiding over the bankruptcy case, Jude Marvin Isgur, demanded speed and a resolution:
I have been very patient in this case, [but] I want to see more action in [what] this future company is going to look like, we need to move on with life].
He went on to state:
The debtors need to be aggressive. (…) I am not sitting here for a year.. to figure out what sites are closing. That is a process that is going to happen now.
Whilst CEO Mooky Greidinger seems keen to hold onto the company, that doesn’t appear to be likely. Any restructuring deal will surely result in a very “significant dilution”, which shareholders can be none too pleased to read about.
We’re going to have to wait and see what ends up happening with Mooky’s cinema company. It does look like they are going to have to be bought out if they want to keep the company above water.
At the moment, it’s not looking good for them at the moment, and AMC does seem to be the most obvious choice of buyer. They would actually want to take control of the sites that Cineworld currently controls.
We will let you know as soon as we hear anything else about what’s happening with the huge cinema chain. My thinking is that they will end up getting bought by AMC, but it might just end up taking a bit longer than we all expected it to.
This all comes after AMC declared that they are no longer in talks to acquire the bankrupt cinema chain (via Reuters).
What do you make of the news? Should AMC take some sites off their hands? Let us know in the comments below, we’d love to hear from you!
What do you make of this story? Let us know in the comments below or on our Facebook, Twitter or Instagram pages! And if you enjoy listening to film podcasts, why not check out our podcast, The Small Screen Podcast, wherever you get your podcasts!