Cineworld gets no offer for whole company, warns on shareholders' equity

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Cineworld said on Friday its shareholders may see the value of their equity wiped out as it looks to exit from Chapter 11 bankruptcy protection after it failed to find a buyer for the whole of the world's second biggest cinema chain.

Says insufficient creditor support for recovery of equity interestssaid on Friday its shareholders may see the value of their equity wiped out as it looks to exit from Chapter 11 bankruptcy protection after it failed to find a buyer for the whole of the world's second biggest cinema chain.

It said it had received initial proposals from a number of counterparties but none offered an all-cash bid for the entire company. "In light of the level of existing debt that is expected to be released under any plan, the Company does not believe that there will be sufficient creditor support for a Plan that contemplates any recovery for equity interests," it said in a statement.

"No bid came near the $6 billion of secured indebtedness that exists on the company's balance sheet today," Kirkland & Ellis lawyer Joshua Sussberg, representing Cineworld, had said on Tuesday. Cineworld said talks with certain stakeholders about a possible plan of reorganisation were ongoing in parallel with a potential sale of assets, but neither path would see shareholders recover their equity interest.

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iThinkitsRobert

That boycott after the Muslims went crazy about that movie killed the business. Well done lads. Let them rot.

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