Cineworld has issued a major update on the future of its UK sites after it filed for bankruptcy.

The chain, which has a cinema in Newport on the Island, has announced that it will no longer be selling its UK, Irish and US locations despite filing for bankruptcy protection last year.

The global company operates brands like Cinema City, Picturehouse, Regal and Planet with 750 locations around the world.

On Monday, April 3, it announced that it has now terminated the planned sale after struggling to find an acceptable offer.

Isle of Wight County Press: Cineworld filed for bankruptcy protection in 2022. ( PA)Cineworld filed for bankruptcy protection in 2022. ( PA) (Image: PA)

Instead, the chain will go under financial restructuring of its approximately £4 billion debt pile.

The restructuring will involve lenders providing around £1.2 billion in new credit and £651 million of equity to the lenders.

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Mooky Greidinger, chief executive of Cineworld, said: “This agreement with our lenders represents a ‘vote-of-confidence’ in our business and significantly advances Cineworld towards achieving its long-term strategy in a changing entertainment environment.

“With a growing slate of blockbusters and audiences returning to cinemas in increasing numbers, Cineworld is poised to continue offering moviegoers the most immersive cinema experiences and maintain its position as the ‘best place to watch a movie’.”

The cinema chain has said that it will continue to trade as normal through the process.

It comes after news that Cineworld’s shares have plunged almost 99% over the past five years.

During the pandemic, the group was hit particularly hard after it was forced to close its cinema sites.

It has also come under pressure from the rise in popularity of streaming services and has continued to post significant losses since then.