The stock has recovered slightly, but is still 60% below its price at the start of Friday trading.
Earlier this week, Cineworld said in a press release that, despite a “gradual recovery of demand” since last spring, admissions were below expectations.
The chain, which owns more than 500 movie theaters across the US, is exploring how to reduce its debt obligations, which it warned would “likely result in very significant dilution of existing equity interests” for shareholders.
Cineworld declined to comment to CNN Business on the reports that it is considering filing for bankruptcy. Kirkland & Ellis LLP did not immediately respond to CNN Business’ request for comment.
— Frank Pallotta contributed reporting.