Cineworld’s share price fell more than 50% last Wednesday after it communicated to shareholders its intention to restructure assets to deal with its c.$5 billion (c.£4.25bn) in debt. The share price has since fallen a further 66% amid speculation that the company would file for bankruptcy bringing the YTD total loss in share price value to over 90%.

Cineworld responded to bankruptcy speculation saying that its cinemas would remain “open for business and continue to welcome guests” but that it was considering “strategic options” to “achieve its restructuring objectives”. One confirmed option is a “voluntary Chapter 11 filing”, the procedure for bankruptcy in the US.

A spokesperson for the company said: “Any such filing would be expected to allow the Group to access near-term liquidity and support the orderly implementation of a fully funded deleveraging transaction.

“Cineworld would expect to maintain its operations in the ordinary course until and following any filing and ultimately to continue its business over the longer term with no significant impact upon its employees.

“As previously announced, any deleveraging transaction would, however, result in very significant dilution of existing equity interests in Cineworld.”