Cineworld considers CVA to survive the coronavirus crisis – FT

People enter a Cineworld cinema following the outbreak of the coronavirus disease (COVID-19) near Manchester
People enter a Cineworld cinema following the outbreak of the coronavirus disease (COVID-19) near Manchester, Britain, October 4, 2020. REUTERS/Phil Noble

November 19, 2020

(Reuters) – Cineworld <CINE.L> is looking at a company voluntary arrangement, an insolvency process used to cut costs, as part of its talks with lenders to gain access to capital, the Financial Times reported, citing three sources close to the negotiations.

The world’s second-largest cinema chain is also considering slashing rents and permanently closing UK cinemas after lockdown restrictions and a lack of blockbuster films caused business to collapse, the FT reported.

The company last month temporarily shut its U.S. and UK operations, leaving 45,000 people unemployed for the foreseeable future.

Cineworld did not immediately respond to Reuters’ request for comment outside regular business hours.

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Anil D’Silva)