Cineworld has announced new funding as it abandons plans to sell its businesses in the United States, the United Kingdom, and Ireland after failing to find a buyer.
After announcing that it would cancel the move, the troubled cinema chain’s stock dropped nearly 30%.
Simultaneously, Cineworld announced that it had reached an agreement with its lenders to restructure its substantial debt and exit bankruptcy.
Cineworld, like other movie theaters, was severely impacted by the pandemic.
Due to social distancing rules, many theaters were forced to close for extended periods of time during lockdowns, or to operate at a reduced capacity.
They are also still up against stiff competition from streaming services.
Cineworld, the world’s second-largest cinema chain, declared bankruptcy in the United States in August of last year as it struggled under the weight of $5 billion (£4 billion) in debt.
The company, which employs over 28,000 people across 740 locations worldwide, announced plans to raise $2.26 billion in new capital.
Cineworld CEO Mooky Greidinger described the transaction as a “vote of confidence” in the company, propelling it “towards achieving its long-term strategy in a changing entertainment environment.”
The company stated that it would continue to consider proposals for the sale of its operations outside of the United States, the United Kingdom, and Ireland.
In 2020, Cineworld and rival AMC, which owns the Odeon Cinemas chain, clashed with Universal Pictures over the release of Trolls: World Tour online at a time when cinemas were forced to close due to coronavirus.
Following that, Cineworld signed a deal with Warner Bros to show films in theaters before they are streamed.
Following the relaxation of lockdown restrictions, cinema chains have seen large crowds return to see the latest Hollywood blockbusters.
Top Gun: Maverick, Avatar: The Way of Water, and Dungeons & Dragons: Honor Among Thieves have all been box office smashes in recent months.