Cineworld Group – the parent company of Cinema City in Hungary – confirmed that they are considering filing for bankruptcy protection. The movie theater chain was unable to recover from the pandemic-induced shutdown and is still struggling with $5 billion worth of debt, and the company’s shares fell 60 percent on Friday.
The Wall Street Journal understands that a bankruptcy mechanism could be prepared within weeks that would allow the company to continue operating while it negotiates with its creditors. Until now, the company had hoped that films like the new James Bond or Top Gun would lure people back to the cinema and reduce their debt, but that did not happen. The company has subsidiaries in a total of 10 countries, but they did not talk about what will happen to them if the American parent company goes bankrupt.