Bankrupt Cineworld takes step towards deal to save cinemas including Valley Centertainment site in Sheffield

The London-listed chain, which owes £4bn, has filed a reorganisation plan with an American bankruptcy court. But it 'does not provide for any recovery for holders of Cineworld's existing equity interests'. The firm’s shares have already plunged from 300p four years ago to 86p today.

The world’s second-largest cinema operator has 128 sites in the UK, including at Valley Centertainment on Broughton Lane, Attercliffe, all of which are operating as normal. It is holding its sixth IMAX Film Fest on Saturday April 22 when all tickets are reduced to £3.

The firm was taken over by its creditors last week after failing to find a buyer. They have already approved the restructuring plan. It aims to pump in fresh funding in exchange for ownership of the reorganised group.

Cineworld expects to emerge from bankruptcy in the first half of this year, though any sale of the business or parts of it may delay the process.

It is the second largest cinema chain in the world behind AMC Entertainment with around 750 venues, including Picturehouse cinemas in the UK.

The company struggled to recover from the pandemic during which cinema chains were badly hit, with many forced to close for extended periods during the lockdowns. They have also come up against tough competition from streaming services which soared in popularity during the pandemic. The chain will be hoping for a boost from the Easter school holidays and the recent releases of films including Dungeons & Dragons: Honor Among Thieves.