28th Sep 2022 13:36
(Alliance News) - Lenders to Cineworld Group PLC have been asked to consider a merger with Canadian movie theatre chain Cineplex Inc, the Wall Street Journal reported on Wednesday.
Cineplex has proposed taking over Regal Entertainment Group, Cineworld's US arm, the newspaper said, citing people with knowledge of the talks.
The Wall Street Journal said Cineplex have also discussed a potential deal that would give Cineworld's lenders debt and stock backed by the combined entity.
Thursday's proposals come after Cineworld filed for bankruptcy in Texas in early September.
The picture house chain owner said at the time it hoped the restructuring process would "significantly reduce" its debt, and strengthen its balance sheet and liquidity.
WSJ noted however that Cineworld still has the right to make its own restructuring offer to creditors.
Back in 2020, Cineworld called off a previously agreed acquisition of Toronto-listed Cineplex.
Cineworld was told to part with CAD1.23 billion, about GBP718.1 million, after a Canadian court ruled against the company in a case brought by Cineplex.
Cineworld's appeal and Cineplex's cross-appeal hearings to that judgment are scheduled for next month.
Shares in Cineworld were down 3.6% at 2.00 pence on Wednesday afternoon in London. The stock is down 97% in the past 12 months.
By Heather Rydings; [email protected]
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