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Cineworld Denies Talks with AMC

Cineworld Group has denied rumors that it has been in discussions with rival AMC Entertainment Holdings over the possible sale of some of its assets.

Cineworld Building
Cineworld Building

The company said it focuses on finding a buyer for the entire group rather than individual units. Cineworld's shares fell as much as 14% on Tuesday. The company, which filed for Chapter 11 bankruptcy in the US in September, warned stakeholders that they might see significant dilution in their equity holdings and may not recover the value of their shares fully.

AMC Holds Talks with Cineworld Creditors

AMC Entertainment Holdings announced in December that it had negotiated with some of Cineworld's creditors about a "potential strategic acquisition" of some of its theaters in the US and Europe. AMC would have contributed equity in preferred stock and assumed some of Cineworld's debts.

However, AMC has since claimed that these talks have halted. Shares in AMC rose in US premarket dealmaking. Despite the fact that the reopening of almost all of its theaters as the pandemic has faded, the company is still making heavy losses.