Cineworld (LON: CINE) shares have been canceled following last week’s suspension from London Stock Exchange (LSE). The move wipes off the existing shareholders of the theatre-chain operator. It is a very disappointing outcome for many long-term investors who have been holding the stock for years.
The shares cancellation was pretty much a given after Cineworld plc filed for administration in the UK a month ago. Nevertheless, it was heartbreaking to see the shares suspended from the London bourse after 17 years of trading.
Cineworld Releases $4.53B in Debt
As a part of its restructuring plan, Cineworld released around $4.54 billion of its debt. In addition, the second biggest theatre chain in Europe also raised $800 million and $1.71 billion via rights offering and debt financing, respectively. The funds are expected to keep the company afloat after its emergence from bankruptcy.
Since July 31, Cineworld plc has officially come out of bankruptcy. It occurred after 11 months of court proceedings, failure to secure any offers for its core businesses, and various takeover rumors. During all this time, Cineworld share price remained extremely volatile.
Cineworld Shares Get Delisted From LSE
Regardless of the outcome, it’s been a wild ride for the holders of Cineworld shares. As per the approved restructuring plan, the firm’s assets have been transferred to a new holding company which will be solely controlled by Cineworld’s lenders. This means that the LON: CINE holders are entitled to nothing but a valuable lesson.
I have been covering this whole Cineworld saga for quite a few months. During this time, I explicitly warned you guys to avoid catching the falling knife, i.e., Cineworld stock. Nevertheless, many people still had to learn it the hard way.
Don’t let Cineworld share price action disappoint you, as there are still plenty of good setups in the market. I keep mentioning such opportunities on my Twitter, where you are welcome to follow me.
