Cineworld, the parent company of Regal Cinemas and the second- largest movie theater chain in the world, filed for Chapter 11 in the U.S.
There is a general view of the flagship L.A. movie theater.
The company expects the move will significantly reduce the group's debt, strengthen its balance sheet and provide the financial strength and flexibility to accelerate, and take advantage of Cineworld's strategy in the cinema industry.
Cineworld expects to emerge from Chapter 11 in the first quarter of next year.
It is likely that some cinemas will close as a result.
Cineworld secured nearly $2 billion in loans to restructure.
Cineworld has over 700 theaters in 10 countries. It purchased a cinema chain for over $3 billion last year. A court in Canada ordered Cineplex to pay $970 million in damages after Cineworld decided not to take over the company. The Wall Street Journal reported last month that Cineworld was on the verge of filing for Chapter 11. Theater attendance isn't back to pre-pandemic levels. Studios are juggling with how to best reach audiences, and are releasing some movies on streaming at the same time, or shortly after their theatrical releases, leaving many unwilling to purchase movie tickets The Pandemic left theaters without blockbuster inventory to screen.
The Cineworld parent company filed for Chapter 11 protection.
Cineworld begins Chapter 11 bankruptcy proceedings in the U.S.
Cineworld has filed for Chapter 11.
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