Cineworld (OTCPK:CNNWQ) - the No. 2 global cinema chain that filed for bankruptcy in September - says it intends to emerge from protection intact, denying a report that it was considering selling off Eastern European operations.
“Cineworld has not initiated, and does not intend to initiate, an individual auction for any of its US, U.K. or RoW [rest of world] businesses on an individual basis,” a spokesperson told Bloomberg.
Bloomberg had reported Friday that the chain's creditors held talks about breaking up the company and selling its Cinema City, Yes Planet and Israel-focused Rav-Chen units, with a goal of drawing $1B in such an auction.
Those assets (in Poland, the Czech Republic, Slovakia, Hungary, Romania, Bulgaria and Israel) cover about 112 cinemas.
But most of Cineworld is made up of the No. 2 U.S. chain, Regal - which UK-based Cineworld acquired for $3.6B, taking on heavy debt to do so. Cineworld is No. 2 globally in theater numbers behind AMC Entertainment (AMC).
The company filed for bankruptcy in Texas with a pile of debt and leases amounting to near $9B. There's a good chance control of the company ends up with its creditors; it had said it anticipated emerging from bankruptcy protection in the first quarter of 2023.