A TROUBLED cinema chain which filed for bankruptcy could still open a new facility in Colchester after bosses announced ambitious plans to save the company.

Cineworld, which already has complexes in Braintree and Basildon, is trying to raise a staggering £1.8 billion in funding to prevent it from going under.

If the finances can be generated in time, the debt-ridden group’s planned sale of its US, UK and Irish businesses could be terminated for good or placed on hold.

In order for Cineworld to succeed in emerging from the brink it will have to restructure its huge pile of dept and lenders will need to front about £1.2 billion in new credit.

Gazette:

Depending on the success of the new action plan, which could also see £651 million of equity given to lenders, under threat cinemas in Essex could remain open.

The news also provides fresh hope for Colchester’s £65 million Northern Gateway leisure park, which hopes to add a Cineworld to its huge roster of businesses.

Last year Colchester Council said it was happy with Cineworld’s financial position, adding it had contingency plans in place with other providers should things change.

But David King, leader of Colchester Council, has now said: “It is good to see they are looking at fresh ways of working themselves out of the situation they are in.

Gazette:

“Cineworld remains the planned operator for the cinema at Northern Gateway and we believe the opportunities it presents remain very attractive to them.

“The cinema is nearing completion and it will be state-of-the-art and will be a very attractive proposition.

“So, we are hopeful Cineworld’s restricting will help free them from the constraints of administration.”

Cineworld’s potential rescue comes after the chain launched a process to find a potential buyer earlier this year.

But after struggling to find an acceptable offer company bosses have now decided to halt the sale and will continue – for the time being - to trade as “business as usual”.

The business will, however, continue to auction its operations based outside of the US, UK and Ireland.

For news updates straight to your inbox, sign up to our newsletter here.

Mooky Greidinger, chief executive of Cineworld, said: “This agreement with our lenders represents a vote-of-confidence in our business.

“It significantly advances Cineworld towards achieving its long-term strategy in a changing entertainment environment.

“With blockbusters and audiences returning to cinemas in increasing numbers, Cineworld is poised to maintain its position as the best place to watch a movie.”