Cineworld (LON: CINE) share price tanked 29% right after opening on Monday. The stock of the owner of Regal Cinemas is now trading at its lowest level in history. The situation has been very harsh to the Cineworld shareholders since the firm filed for bankruptcy last year.
The recent developments suggest that the shareholders of the British Cinema giant may be left with nothing in their hands as the firm prepares to emerge from bankruptcy. On Monday, the Cineworld shares tanked 29% and were changing hands at 0.52p till press time.
In one of the major blows to the shareholders, Cineworld Group plc has confirmed its intentions to apply for administration in the UK. The company’s stock will be delisted from the London Stock Exchange right after the appointment of the administrators.
According to the latest Cineworld news, the Group’s assets will be transferred to its subsidiary Crown UK Holdco. It will be solely owned by a new entity controlled by Cineworld’s lenders. However, all the operating companies of Cineworld Group plc will remain unaffected.
Since its bankruptcy in 2022, LON: CINE has become just a tool for speculation. Rumors have mostly driven the price action of Cineworld stock. When the firm’s restructuring plan was approved, it was also revealed that the new plan may wipe out the shareholders. Therefore, the recent development comes as no surprise.
Investors are now rushing to close their positions, anticipating delisting after the appointment of administrators. The 29% sell-off on Monday depicts the panic among the shareholders. I expect the stock to remain in a tailspin leading up to its potential delisting. Nevertheless, there can still be a few manipulated volatility spikes in the upward direction.
You are also welcome to follow me on Twitter to keep track of my personal trades and the latest analysis on Cineworld shares.
This post was last modified on %s = human-readable time difference 12:08