The world's second-largest cinema chain is also considering slashing rents and permanently closing United Kingdom cinemas after lockdown restrictions and a lack of blockbuster films caused business to collapse, the FT reported.
Early in October, management of the FTSE 250-listed company made a decision to shutter all its United Kingdom and U.S. cinemas due to the postponement of major film releases by Hollywood studios, with the delay of No Time to Die, the James Bond-shaped straw that broke the camel's back.
The deal, dubbed "Company Voluntary Arrangement", would help the company weather the pandemic by restructuring and renegotiating its growing $8.2 billion pile of debt.
In addition to exploring a CVA, Cineworld is in individual discussions with landlords over possible rent cuts.
In line with the Monetary Occasions, U.Ok. cinema operators Vue, Odeon and Everyman have additionally engaged consultants to debate phrases with landlords and lenders.
Cineworld Group PLC (LON:CINE) shares fell sharply on Thursday after a report that the company was considering dropping the curtain permanently on some of its United Kingdom cinemas.
On Thursday, the owner of London's Trocadero Centre lodged a High Court claim against Cineworld, suing it for £1.4million over unpaid bills.
The Odeon and Vue teams additionally determined to function some websites on weekends exclusively, till Prime Minister Boris Johnson ordered a second lockdown in England that's at present in operation.