Unlocking Word Meanings
Read the following words/expressions found in today’s article.
- closure / ˈkloʊ ʒər / (n.) – the act, process, or condition of a business stopping its operations permanently
Example:A lot of employees lost their jobs after the company’s closure.
- disruption / dɪsˈrʌp ʃən / (n.) – the act of being prevented from continuing in its usual way
Example:The weather-related disruption caused delays in several flights.
- reorganization / ˌri ɔr gə nəˈzeɪ ʃən / (n.) – the process of making changes in the structure of a business corporation, often after failure or pending bankruptcy
Example:The corporation will undergo a reorganization due to its millions of debts.
- relief / rɪˈlif / (n.) – legal solution
Example:The company brought the issue to court to seek relief from its legal obligations.
- liability / ˌlaɪ əˈbɪl ɪ ti / (n.) – debt or financial obligation
Example:The company is already selling some of its assets to address its liabilities.
Article
Read the text below.
Movie theater operator Cineworld Group LLC has filed for Chapter 11 bankruptcy protection in the U.S. as it deals with billions of dollars in debt and lower-than-expected attendance at screenings.
“The pandemic was an incredibly difficult time for our business, with the enforced closure of cinemas and huge disruption to film schedules that has led us to this point,” CEO Mooky Greidinger said in a statement.
The company and its subsidiaries have commitments for an approximate $1.94 billion debtor-in-possession financing facility from existing lenders, which will help ensure Cineworld’s operations continue as usual while it undergoes a reorganization.
The British company, which owns Regal Cinemas in the U.S. and operates in 10 countries, said its theaters remained “open for business as usual” as it considered options for relief from its debt load.
Cineworld had built up $4.8 billion in net debt, not including lease liabilities. The company, which has about 28,000 employees, previously said that its admissions levels have recently been below expectations. And with a “limited film slate,” it expects the lower levels to continue until November. That would mean an additional crunch to its finances.
Cineworld anticipates exiting from Chapter 11 during the first quarter of 2023.
This article was provided by The Associated Press.
Viewpoint Discussion
Enjoy a discussion with your tutor.
Discussion A
- What is the impact of the pandemic on movie theaters in your country? How are movie theater companies adapting to the pandemic? Discuss.
- Do you think companies like Cineworld will still be profitable after the pandemic? Why or why not? Discuss.
Discussion B
- What do you think is the effect on the public when a company files for bankruptcy (ex. they are less likely to trust the company)? Discuss.
- Would you still buy products or services from a company that has recovered from bankruptcy? Why or why not? Discuss.