Market report

Cineworld confirms Chapter 11 talks | oil price falls


4.30pm: London lower

The FTSE 100 closed 16.58 points lower at 7,533.79.

Following Friday’s share price collapse, Cineworld tumbled a further 21.36% after it confirmed it was considering filing for bankruptcy in the US.

Shares of Hungary-based Wizz Air descended 9.83% after the carrier said chief financial officer Jourik Hooghe would step down to pursue opportunities outside of the company.

Cineworld talks

Cinema operator Cineworld has confirmed reports that it is considering a possible voluntary Chapter 11 filing in the United States and is in discussions with many of its major stakeholders.

Any such filing would be expected to allow the group to access near-term liquidity and ease its debts.

It said it expects to continue operating “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.

Cineworld said its evaluation of these strategic options remains ongoing. A further announcement will be made if and when appropriate.

AAB expands

AAB has acquired HR consultancy, Think People Consulting for an undisclosed sum, to expand the services offered across the group.

Think People Consulting has an annual revenue of c.£1.7million and a team of 24 people in Belfast and Dublin.

Global markets

Oil prices fell early today, ending three days of gains, amid new concern over aggressive US interest rate increases and a strengthening dollar.

Brent crude futures fell $1.20 to $95.52 a barrel. US West Texas Intermediate was down $1.24 at $89.53.

Both Brent and WTI climbed for a third consecutive day on Friday, but fell about 1.5% for the week on a stronger dollar and demand fears.

Federal Reserve chair Jerome Powell addresses an annual global central banking conference in Jackson Hole, Wyoming, on Friday.

China’s central bank has cut its mortgage lending rate as officials work to support the struggling economy.

The People’s Bank of China lowered the five-year loan prime rate by 1.5 percentage points, which matches its biggest cut on record.

The world’s second largest economy faces a property crisis that has seen some building projects grind to a halt.

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