Cineworld Group PLC (LSE:CINE) has announced plans to place itself into administration in the UK as it moves closer to exiting Chapter 11 in the US.
The process will only apply to Cineworld Group PLC (LSE:CINE) itself (the listed parent company of the group) and not to any of the operating companies or subsidiaries in the rest of the firm, which will continue to operate without interruption.
The embattled cinema chain said it plans, once administrators are appointed, to transfer the assets from Cineworld Group PLC to its wholly owned subsidiary, Crown UK Holdco Limited, a newly incorporated company to be controlled by the group's lenders.
The plan is part of efforts to allow the business to emerge from Chapter 11 as a continued going concern. It will not mean a rescue of Cineworld Group PLC itself.
Shares in Cineworld will be suspended once an administrator has been appointed.