Cineworld Group, the owner of Regal Cinemas, has revealed that it has decided to scrap plans to sell its businesses outside the U.S., the U.K. and Ireland.
The company said on Tuesday that it had received proposals for its so-called “Rest of the World” business, which includes cinema chains in Eastern Europe and Israel, from a number of prospective bidders, but the bids did not meet the value level required by Cineworld’s lenders. It didn’t disclose the name of suitors and price details.
Cineworld previously also said that “absent an all-cash bid significantly in excess of the value established under (its) proposed restructuring, the marketing process as it relates to the (sale of the) group’s business in the U.S., the U.K. and Ireland will be terminated.”
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The world’s second-largest movie theater chain is in the midst of a plan to emerge from bankruptcy after filing for Chapter 11 protection in September. Last week, Cineworld unveiled a reorganization plan designed to reduce the firm’s debt by about $4.53 billion.
Like many cinema operators, London-based Cineworld was hit hard by COVID pandemic-enforced closures of theaters. Then the slow return of audiences and also the initial lack of Hollywood product to put on screen as lockdown measures eased affected the firm. The operating environment in 2023, however, has improved somewhat, helped by bona fide blockbusters, such as Avatar: The Way of Water, The Super Mario Bros. Movie and John Wick: Chapter 4.
Cineworld said it continues to expect to emerge from Chapter 11 protection during the first half of 2023.
