Cineworld said on Tuesday it had filed a reorganization plan in a Texas bankruptcy court that will effectively wipe out existing shareholdings, sending its stock to an all-time low.
The filing formalizes a deal laid out on April 3 that includes plans to cut debt by about $4.53 billion and raise $2.26 billion in funds to emerge from bankruptcy. It does not provide for any recovery for its existing shareholders, the group said.
Shares in the world’s second-largest cinema chain operator fell to 1.5 pence on Tuesday, and have lost more than 99% since it listed in 2007.
Cineworld, which placed a majority of its business under U.S. Chapter 11 bankruptcy protection in September, last week dropped plans to sell its businesses in the U.S., the U.K., and Ireland after failing to find a buyer.
The group’s chapter 11 companies are seeking to confirm the plan on an “expeditious timeline”, Cineworld said, adding that it continues to operate its global business and cinemas as usual without interruption.
The plan filed with the United States Bankruptcy Court for the Southern District of Texas, Houston Division, is yet to be approved.
Cineworld, which expects to emerge from Chapter 11 in the first half of 2023, said any transaction resulting from the marketing process may delay emergence beyond that point.