Dec. 21 (UPI) — AMC Networks no longer is looking to acquire Regal Cinemas from London-based parent company Cineworld, which filed for Chapter 11 bankruptcy in September.
Based in New York City, AMC filed documents with the U.S. Securities and Exchange Commission Wednesday where it outlined that it is no longer interested in acquiring any of the Regal locations.
“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,” the filing states.
“While AMC reserves the right to continue to explore the acquisition of value enhancing strategic assets, there can be no assurance that AMC will resume any discussions with the Lenders or, if it were to do so, that it would be able to agree with Lenders or any other party as to the terms of a mutually acceptable proposal.”
AMC had been in discussions with Cineworld creditors about a possible sale of some locations after the bankruptcy filing.
Cineworld, the world’s second-largest theater chain owns more than 500 Regal movie theaters in the United States, in addition to Cineworld and Picturehouse venues in Britain.
Cineworld’s bankruptcy filing will “strengthen its balance sheet and provide the financial strength and flexibility to accelerate, and capitalize on, Cineworld’s strategy in the cinema industry,” the company said in September, blaming lower admissions and delayed film schedules on the COVID-19 pandemic.
This comes a few weeks after AMC, the world’s largest movie theater chain announced “large-scale” layoffs. That announcement the same day the company’s CEO stepped down after only three months on the job.
At the time, AMC parent company MSG Entertainment CEO James Dolan said in a memo that the decision to layoff employees came after significant subscriber losses due to the cancellation of cable bundles in favor of streaming, or cord-cutting.
