Cineworld (OTCMKTS:CNWGY) stock is in the news again Monday after the theater chain reveals plans to file for bankruptcy protection in the United States.
This news comes after potential bankruptcy reports on Friday. The claims also stated the company would start insolvency proceedings in the United Kingdom. The bankruptcy filing will allow Cineworld to negotiate with creditors.
Investors in CNWGY stock are rattled by the bankruptcy filing news today. While a company can come out of bankruptcy, it’s never a good sign when one has to go into it. However, it’s possible that restructuring the company will give Cineworld a viable second chance.
On the customer side of things, there won’t be any major changes just yet. While going through bankruptcy, Cineworld will continue normal operations. That includes maintaining its benefits for Cineworld Unlimited members.
Cineworld is also looking to keep going long-term despite this bankruptcy filing. In a statement, the company said it will maintain current operations and that the filings wouldn’t affect its employees.
Today’s news has CNWGY stock seeing heavy trading this morning. As of this writing, more than 400,000 shares of the stock have changed hands. That’s a massive jump compared to its daily average trading volume of about 100,000 shares.
CNWGY stock is down 17% as of Monday morning and down more than 90% since the start of the year.
There’s more stock market news worth diving into below!
We’ve got all of the latest stock market news for Monday! That includes why Social Capital Suvretta Holdings (NASDAQ:DNAA) stock is rising, this morning’s biggest pre-market stock movers and more. You can catch up on all of that news at the following links!
More Stock Market News for Monday
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
