- AlixPartners is expected to be appointed as administrator of Cineworld’s holding company.
- The filing for administration is part of a financial restructuring that will eliminate shareholders.
- Cineworld’s British operations are expected to remain unaffected by the insolvency proceedings.
AlixPartners’ designation as administrator of the struggling movie chain’s publicly traded holding company is expected this week.
The London-listed holding company of Cineworld is preparing to file for administration as part of an extensive financial restructuring that will result in the elimination of its shareholders.
AlixPartners will assist the multinational cinema operator in transferring ownership to its financiers in its capacity as administrator.
According to one source, an announcement is anticipated to be made by the end of next week.
According to a spokesperson, Cineworld operates 128 locations in the United Kingdom and employs thousands of individuals.
And according to insiders, its British operations will not be affected by the holding company’s insolvency proceedings.
According to a statement released in April, the restructuring will reduce Cineworld’s debt by $4.5 billion and be accompanied by an $800 million rights issue to put the company on a sustainable financial footing.
Cineworld has been operating under Chapter 11 bankruptcy protection for several months and intends to exit the process soon.
The group’s lenders are hiring a new board and CEO to take over.
However, it is believed that media speculation that David Ownby, a former executive at Regal Cinemas, is the leading candidate for the position is inaccurate.
A spokesperson for Cineworld declined to comment.
