No Takers For Cineworld's U.S. Or British Assets In Bankruptcy Sell-Off
UK-based movie theater operator Cineworld Group reportedly received no investor bids for its U.S. or British assets during its effort to restructure as part of its bankruptcy filing in the United States in September.
The company, the second-largest operator of movie theaters worldwide, apparently received 40 bids for other assets, mainly in continental Europe and Israel, Reuters reports, citing comments made by company counsel in bankruptcy court.
Cineworld attorney Joshua Sussberg told the court the company received no all-cash bids for any assets, but that there was some “strategic interest” in the entire company, Deadline reports. No bid amounted to anything close to the $6B in debt the company has, he added.
The company will probably move toward a court-directed settlement of its bankruptcy without any guarantee that it will remain intact, according to The Hollywood Reporter, though Cineworld has set a second deadline, April 10, for more bids.
Cineworld is parent company of Regal Cinemas, which had 511 U.S. locations when the company filed for bankruptcy. The chain has been ailing since the 2020 closures caused by the pandemic. The two U.S. landlords with the most Regal Cinema locations in their portfolios are Simon Property Group and Realty Income Corp., according to CoStar.
Cineworld stock dropped about 1.3% on Thursday morning, after a steeper drop the day before. Compared with a year ago, its stock has lost about 90% of its value.
