Giant theater chain Cineworld will convene a meeting of its shareholders on April 20 related to the Chapter 11 process currently underway in a Texas bankruptcy court.
The meeting, which is in-person only, is required by UK securities law, Cineworld said today, “in circumstances where the value of the company’s net assets is less than half of its called up share capital” – officially constituting a “serious loss of capital.” The purpose — “allowing shareholders to consider whether any, and if so what, steps should be taken to deal with the situation.” That said, there isn’t much stockholders can actually do beyond “consider” as they’re set to be wiped out, something the company acknowledged, saying, “It is not expected that any plan of reorganisation or sale transaction would result in any recovery for Cineworld’s shareholders.” The Board “is calling the General Meeting to ensure that this matter is addressed as required by the Act.
The Board welcomes dialogue with the Company’s shareholders, and the General Meeting will provide a forum for such discussions to take place, but no resolutions will be proposed at the General Meeting,” Cineworld said in a filing.
The Brentford (West London) gathering is set for 10 am local time. Highly-indebted Cineworld filed for bankruptcy last fall with its coffers almost empty amid a slow box office recovery, which has since picked up steam.Read more on deadline.com