Cineworld Group PLC's (LSE:CINE) roller coaster ride continued Wednesday with its shares slumping 7.9% after US cinema chain AMC Entertainment Holdings (NYSE:AMC) said it was no longer in talks to acquire some cinemas owned by the group.
AMC said it had held initial talks with lenders which were focused on the acquisition of certain assets of Cineworld in the US and Europe.
The discussions came about as Cineworld’s debtors explored strategic alternatives, including selling certain theatre assets.
The acquisition would have been partially funded via the issuance of AMC APEs and debt financing provided by the lenders.
The funding was on condition that AMC complete a specific liability management exercise regarding its current indebtedness.
However, the firm did not reach a definitive agreement with its lenders that could be presented to Cineworld’s creditors and, as a result, it has ended talks.
“A definitive agreement with the lenders has not been reached regarding the terms of any proposal to be presented to the debtors in the Cineworld cases, and at this time negotiations are not continuing,” AMC added in a regulatory filing.
There has been frenzied speculation about the future of Cineworld after it filed for bankruptcy protection in Texas in September.
The UK’s third largest cinema chain, Vue, was reportedly keen on buying some assets but as of yet nothing has materialised.