Regal-owner Cineworld, the world’s second-largest movie theater operator, has denied reports it is in talks with AMC, the world’s largest movie theater group, about selling its assets. Cineworld added that it intends to sell the group in its entirety rather than break it up.
As well as denying it was in talks with AMC itself, Cineworld said it “understood” that neither its lenders nor their advisers were in favor of talks with AMC.
AMC said last month that it was no longer in talks to buy some theaters owned by Cineworld after preliminary talks with some lenders.
After Cineworld filed for Chapter 11 bankruptcy protection on Sept. 7, it is negotiating with “key stakeholders” to develop a restructuring plan that seeks to “maximize value for the benefit of moviegoers and other stakeholders.” Those discussions are ongoing.
In parallel with the development of plans to restructure the group’s capital structure, the company said it will “conduct a marketing process” to maximize the value of its assets, “fully focused on the proposition for the group.” The company said it plans to reach out to potential buyers this month.
Cineworld said it “has not initiated and does not intend to initiate a separate marketing process to sell any of its assets on a standalone basis.”
It said it expected any restructuring or sale would “result in a very significant dilution of existing equity interests in Cineworld.”
Cineworld’s woes began after the abandoned acquisition of Canadian movie chain Cineplex, which left the company with a $1 billion bill to compensate Cineplex for the failed bid.