Filing a petition for bankruptcy of Cineworld in an American court will not affect the operations of Cinema City cinemas, the company argues. The purpose of bankruptcy proceedings is to be restructuring, not termination.
The Cineworld concern operates 34 Cinema City cinemas in Poland. The company confirmed that it is considering filing a bankruptcy petition in the US, but that its aim is to restructure, not to shut down cinemas.
When the Polish media announced on the weekend information about a possible bankruptcy petition to be filed by the American company Cineworld, speculation immediately began when the cinemas under the Cinema City brand would cease to operate . It is the largest cinema chain in Poland.
Cineworld, in a statement published at night in Polish time, argues that the purpose of the proposal is not to shut down more than 700 cinemas around the world, but to restructure and restore the company’s finances.
The proceedings considered by the concern are similar to the structure of the arrangement proceedings existing in Polish law, which are aimed at enabling the debtor to determine the terms of repayment of receivables and aimed at preventing the termination of the debtor’s activity.
Wants to continue its operations
Wirtualne Media asked for a comment from Cinema City Poland management board member Oldrich Kubista. He argues that the operation of network cinemas in Poland is not endangered.
As announced earlier this week, we are proactively analysing strategic options to ensure a solid balance sheet structure and flexibility to adjust to market conditions, and the process is ongoing. We expect that the actions taken will have no impact on the current business activities of the entire Group, including Cinema City, as stated in a statement submitted to the editorial office of Wirtualne Media.
Cinema City did not recover from the pandemic
Last week’s statement from the concern shows that it is difficult for him to make up for the losses caused by the pandemic (due to the restrictions introduced, the cinema remained closed for some time). Although the situation in the cinema industry is improving, attendance is still below expectations, and any improvement would not take place until November this year, which will have a negative impact on the company’s sales results and its financial liquidity.
Cineworld stressed that talks with potential investors will not translate into the company’s operating activities, which means that the cinemas will operate normally.