London
CNN
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Cineworld’s stock plummeted 36% Tuesday afternoon to an all-time low after the company said it had filed a plan to reorganize its business and shareholders would not recover any of their funds.
The embattled owner of Regal Cinemas said it had submitted a final version of the plan to a US bankruptcy court in Texas. It first announced details of the proposal on April 3.
The company said already back in February that it expected shareholders to be wiped out entirely by the bankruptcy process, even if it sold some of its businesses.
“The proposed restructuring does not provide for any recovery for holders of Cineworld’s existing equity interests,” the company confirmed in a statement Tuesday.
Under the plan, Cineworld’s lenders will cut its debt by $4.5 billion in exchange for equity in the reorganized company.
Sophie Lund-Yates,…
2023-04-11 07:39:56
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