Cineworld's London-listed holding company is expected to file for administration before the end of next week, but Isle of Wight staff have been told they will not be affected.
According to Sky News, Cineworld's holding company is preparing for administration as part of a comprehensive financial restructuring.
The move will see the stakeholders of the company wiped out and move the lenders into a position to take control of the business.
Sky News reported the multinational cinema operator is lining up AlixPartners to act as administrator to help effect a transfer of ownership to its lenders.
Cineworld has been in a Chapter 11 bankruptcy protection for months, a process it plans to exit shortly.
Sky News said the restructuring will reduce Cineworld's indebtedness by $4.5bn.
Will any of the UK Cineworld sites be affected?
It's reported, Cineworld trades from 128 sites in the UK, employing thousands of people.
According to Sky News its British operations will not be impacted by the insolvency process for the holding company.
Cineworld declined to comment.
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