Cineworld plans to raise $2.26bn (£1.8bn) in new funds as the ailing cinema chain looks to emerge from bankruptcy.
The company filed for US bankruptcy protection last year.
It has sought to restructure its $5 billion debt after being hit hard by lockdowns and a lack of major film releases due to the pandemic.
Cineworld, which also owns the UK’s Picturehouse chain, is struggling to find a buyer.
Proceeds from the capital raise will be used to fund the company’s reorganization, including costs related to restructuring its debt, Cineworld said in a filing with US Bankruptcy Court in the Southern District of Texas.
It is the second largest cinema chain in the world by number of screens with more than 9,000 screens in almost 750 locations.
Cineworld’s operations span 10 countries – including the UK, US, Poland and Israel – with approximately 30,000 employees worldwide.
Cinema chains have been one of the hardest-hit industries during the pandemic.
Many cinemas have had to close for extended periods during the lockdown or have had to operate at reduced capacity due to social distancing rules.
Cineworld reported a huge loss for the first six months of 2020 after being forced to temporarily close some theaters and film studios delaying the release of some blockbuster films.
Cinemas are also facing stiff competition from streaming services, which have grown in popularity during the lockdown.
A row erupted in 2020 when Cineworld and rival AMC, which owns the Odeon Cinemas chain, criticized Universal Pictures for releasing Trolls: World Tour online when cinemas had to close due to the coronavirus.
Cineworld then signed a deal with Warner Bros. to show films in theaters before they are streamed.
More recently, streaming giant Netflix reported a sharp drop in subscriber numbers as the rising cost of living prompts people to save.
The company’s London-traded shares have fallen more than 90% over the past year as investors worry about its future. Its current market value is under £40m ($49.1m).
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