[ad_1]
\n<\/p>\n
Cinema chain Cineworld\u2019s market value more than halved after management said that it was in talks with stakeholders about a financial rescue package.<\/p>\n
The chain has blamed a lack of blockbuster films which has in turn resulted in lacklustre admission levels.<\/p>\n
Cineworld has managed to rack up a debt of more than $4.8bn (\u00a34bn\/\u20ac4.8bn) according to the Guardian<\/a>, after the impact of the pandemic and the fact that not enough films were hitting the cinemas.<\/p>\n In a stock exchange statement, Cineworld said that it was in discussion with various stakeholders. \u201cAny deleveraging transaction will likely result in very significant dilution of existing equity interests in Cineworld,\u201d the chain said.<\/p>\n Cineworld\u2019s market value dropped to just over \u00a3100m yesterday (Wednesday), an almighty drop from the \u00a34.4bn valuation before the COVID-19 pandemic hit.<\/p>\n The Guardian reports that a debt-for-equity swap deal is likely to see the stake held by investors and Cineworld\u2019s chief executive Mooky Greidinger, and his family, wiped out.<\/p>\n Cineworld stated: \u201cDespite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations. These lower levels are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group\u2019s liquidity position in the near term.\u201d<\/p>\n