London, UK: In a surprising move, struggling cinema chain Cineworld has announced the termination of its plans to sell its UK, US, and Ireland businesses.

The decision comes as a shock to industry insiders who expected the sale to be a lifeline for the beleaguered company, which has been hit hard by the COVID-19 pandemic. The move is expected to have significant implications for the cinema industry and the future of the company itself.

The company also disclosed its intention to secure new funding of $2.26 billion to help it emerge from bankruptcy protection. In September 2022, Cineworld, which operates approximately 750 cinemas worldwide, including the Picturehouse chain in the UK, filed for bankruptcy protection in the US.

The move came amidst the ongoing challenges facing the cinema industry as a result of the COVID-19 pandemic, which forced many cinemas to close their doors and led to a significant decline in revenue.

Cineworld’s newly announced financial restructuring program has been designed to tackle the company’s debt, which stands at approximately $5 billion. Cineworld’s lenders will provide approximately $1.46 billion in new credit, along with $800 million of equity to the lenders. Earlier this year, Cineworld attempted to locate a potential buyer but did not receive any acceptable offers.

Although Cineworld will terminate its plans to sell its businesses in the UK, US, and Ireland, the company will still move forward with an auction for its operations in other regions.