Britain’s Cineworld, the world’s second-biggest cinema chain, has filed for bankruptcy protection in the US as it seeks to restructure after facing low audience numbers.
Cineworld said in a statement that it filed for Chapter 11 protection, a court-supervised restructuring process that gives companies time to negotiate with creditors to reach a settlement on the reduction of debts.
Cineworld shares rose 10% on Wednesday to 4.29p, but were still down 87% from the start of the year.
The company also warned existing shareholders that their holdings would probably be considerably diluted as part of the bankruptcy process.