Cineworld share price has been range-bound for the past two months amid bankruptcy proceedings. The CINE stock has crashed by more than 90% this year and 80% in the past 6 months. Its total market capitalization has dropped to £65.92 million.
CINE Bankruptcy Proceedings
Cineworld share price has been under intense pressure this year as the company struggled to recover from the material impact of the Covid-19 pandemic. The pandemic saw the company drown in huge chunks of debt as it fought for its survival.
Earlier in September, Cineworld Group Plc filed for US Chapter 11 bankruptcy in Texas to aid in taming its $5 billion debt pile. Earlier on Friday, a Bloomberg report claimed that the company’s bankruptcy administrators were considering a plan that would spin off its operations in Poland, Hungary, and Romania.
Cineworld has been operating Regal, Cinema City, Picture house, and Yes Planet during the Chapter 11 cases. According to the report by Bloomberg, the administrators were looking to sell these assets to an Israeli corporation to recoup a part of their debts. However, on Monday, Cineworld denied the claims and stated that it intends on emerging from the ongoing proceedings unscathed. This saw the shares jump by more than 5%.
In a report, the firm’s spokesperson stated that.
“Cineworld has not initiated, and does not intend to initiate, an individual auction for any of its U.S., U.K., or rest of world businesses on an individual basis,”
Cineworld Share Price Forecast
The daily chart shows that Cineworld share price has been range-bound for the past few months. At the time of writing, the stock was trading 1.10% higher at 4.949p. It is moving below the 25-day moving average and above the 50-day moving average. Its Relative Strength Index is neutral at 53. Therefore, bulls need to gather momentum to push the price past the resistance at 9p. However, a flip below the 50-day moving average will initiate a bearish trajectory.