Cineworld Group PLC
said Wednesday that it is in funding talks that will likely result in a significant dilution for existing shareholders, as recent admissions have been below expectations.
The FTSE 250 cinema operator said it is in discussions with stakeholders and is evaluating strategic options for additional liquidity and a potential restructure of its balance sheet through a comprehensive deleveraging transaction. Steps to ensure balance sheet strength and flexibility are being taken, including significant operational and financial initiatives to manage costs and enhance liquidity, it said.
The lower admissions are because of a limited film slate that is expected to continue until November, with performance and liquidity set to be hit, the company said.
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