Cineworld considers CVA

Cineworld, the world’s second largest cinema chain, is considering a company voluntary arrangement (CVA) as part of a wider restructuring process to secure its future.

A final decision on the process is yet to be made, but it is understood the CVA could lead to the closure of a small number of its 127 UK sites.

The business temporarily closed its entire UK estate last month because of the “increasingly challenging theatrical landscape” caused by the coronavirus crisis.

Since then, it has appointed AlixPartners to advise on its options, including a possible CVA, in tackling its $8.2bn debt pile.

Reporting its half year results in September, the group said it had raised additional liquidity of $360.8m and that it should be able to operate under its present loan arrangements for at least 12 months.

It saw a huge loss of $1.6bn (£1.3bn) for the first six months of the year, with all its UK cinema’s closed for three months during lockdown.

Speaking at the time, CEO Mooky Greidinger said: “I am fully confident we can survive. There are things beyond our control, as we saw in the last six months, but we have a very good business and an excellent track record. We just need to get Covid behind us. The question is how quickly it’s going to happen.”