22nd Feb 2023 13:21
(Alliance News) - Cineworld Group PLC is yet to receive any full takeover offers, the Financial Times reported on Wednesday, as the cinema chain's bankruptcy hearings in the US continue.
A lawyer representing Cineworld told a Texas court that it has contacted a "broad universe" of about 40 possible suitors, the FT reported.
While the company has received a number of bids for its operations outside of the US and UK, a firm offer for the full business was not forthcoming.
The FT reported that the lawyer said no bid has come "anywhere near" the USD6 billion of secured indebtedness on the struggling cinema chain's balance sheet.
https://www.ft.com/content/64f6c564-5fbb-4a8d-bef0-d96d873469c3
Cineworld shares tumbled 12% to 3.92 pence each in London on Wednesday. The company has a market capitalisation of GBP53.8 million.
Last week Monday, Cineworld shares jumped 18% on hope that industry peer Vue International was preparing a rescue bid.
Vue lined up financial backing from its new shareholders to help assemble a takeover tilt for the Brentford, London-based cinema chain, according to a report from Sky News last week Monday.
Funds managed by Barings and Farallon Capital Management had agreed to provide capital to Vue International to support strategic acquisitions, according to Sky News, with City sources claiming this support would allow Vue to be among the bidders for Cineworld.
The beleaguered cinema chain put itself up for sale in January in the hope of securing its future.
Back in September 2022, Cineworld confirmed it was beginning a Chapter 11 filing in US Bankruptcy Court in Texas, as it grappled with liquidity woes.
It had first announced it was considering a Chapter 11 filing on August 22, and any deleveraging would likely result in a "very significant dilution" of its shares.
Since then, there have been reports that Cineworld has been in discussions with London-based Vue International and Toronto-based Cineplex. Before the Covid-19 pandemic, Cineworld had agreed to buy Cineplex, but later backed and was ordered to pay damages to Cineplex by a Canadian court.
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Related Shares:
CINE.L