Beleaguered cinema operator Cineworld (CINE) saw its shares     drop a further 28% to 2p on 3 April taking the losses to 42% over the last three months and 94% over the last 12 months.

It is likely current shareholders will be wiped out completely following news the company’s lenders plan to move ahead with a $4.53 billion debt for equity swap and raise a further $800 million in fresh equity.

Current investors in the shares will not be able to participate with the company indicating the proposed restructuring ‘does not provide for any recovery for holders of Cineworld’s existing equity interests’. The shares will however remain trading while the restructuring takes place and potentially even thereafter too.

Unless the company receives an offer for the whole group more than the value established under the restructuring plan, it will not sell the US, UK, and Ireland assets.

However, the company said the restructuring plan ‘will provide sufficient flexibility to accommodate a sale of the Rest of the World business’.

Although no announcement has been made the Financial Times reported that the restructuring would likely mean CEO Mooky Greidinger ‘relinquishing control of his third-generation family business’.

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