Cineworld says it will no longer have to sell off its cinemas in the UK despite it previously filing for bankruptcy.

The British cinema operator went into administration in 2022 and announced that it is in £5 billion in debt.

Earlier this year, Cineworld, which also owns the Picturehouse chain in the UK, launched a process to find a potential buyer.

There were also fears that 129 branches across the UK were at risk of closure.

These include east London branches in Ilford, Stratford and Canary Wharf.

Ilford Recorder: Cineworld says it will no longer sell cinemas in the UKCineworld says it will no longer sell cinemas in the UK (Image: PA)

But in a stakeholder report released today, Cineworld says this will no longer be the case as it will restructure its debt of roughly five billion dollars in order to emerge from the Chapter 11 bankruptcy during the first half of 2023.

The financial restructuring will involve lenders providing around 1.46 billion dollars (£1.2 billion) in new credit, as well as 800 million dollars (£651 million) of equity to the lenders.

Despite halting the potential sale of businesses in the UK, US and Ireland, it will continue with an auction for its operation outside of these countries.

Cineworld chief executive Mooky Greidinger said: “This agreement with our lenders represents a ‘vote-of-confidence’ in our business and significantly advances Cineworld towards achieving its long-term strategy in a changing entertainment environment.

“With a growing slate of blockbusters and audiences returning to cinemas in increasing numbers, Cineworld is poised to continue offering moviegoers the most immersive cinema experiences and maintain its position as the ‘best place to watch a movie’.”

Ilford Recorder: Cineworld filed for bankruptcy last yearCineworld filed for bankruptcy last year (Image: PA)

The group said it will continue to trade as “business as usual” throughout the financial restructuring process.

Cineworld’s shares have plunged almost 99 per cent over the past five years, as it was hit particularly hard by the Covid pandemic, which led to the enforced closure of its cinema sites.

The business has posted significant losses since and has also come under pressure from growth in streaming services.