Beleaguered cinema giant Cineworld, the world’s second biggest movie theater chain and owner of Regal Cinemas, confirmed on Monday it is considering filing for bankruptcy in the U.S. as it struggles to manage debts following years of disruption during the pandemic and after staging a disappointing recovery.

Cineworld Group confirmed U.S. bankruptcy is on the cards as it evaluates “strategic options” to restructure business and source additional funding as it struggles to recover from the Covid-19 pandemic, the British company said in a statement.

Cineworld added it expects to continue operations as usual until and after any filing and “ultimately to continue its business over the longer term with no significant impact upon its employees.”

Cineworld and Regal theaters globally will stay “open for business as usual” while the company considers next steps, the statement said.

Cineworld shares nosedived on Friday after the Wall Street Journal reported the company was preparing to file for bankruptcy as it struggled to rebuild from the pandemic.

Cineworld’s share price was flat in London Monday morning and trading just above 4p (around 5 cents).

The entertainment industry was hit especially hard during the pandemic as lockdowns shuttered theaters and film sets. Recovery, beset by rising inflation, a worsening cost of living crisis and the industry’s changing relationship with streaming—initially a lifeline during lockdown—has been a struggle and the chain does not benefit from the “meme stock” status that helps rival AMC Theatres raise capital. Cineworld, which narrowly avoided bankruptcy during the pandemic, has hit out at the “limited film slate” as one reason for its flagging recovery, something it expects to continue until November, and said hopeful admission drivers like Top Gun: Maverick, The Batman and Thor: Love And Thunder had been disappointing. The chain is also embroiled in a costly legal battle following an aborted takeover of Canadian rival Cineplex.

$5 billion. That’s the value of debt with coming maturities Cineworld faces right now, according to Journal. Net debts near $9 billion.

Cineworld Shares Plunge More Than 50% After Report Of Looming Bankruptcy, AMC Falls (Forbes)

Regal Owner Cineworld Nears Bankruptcy as Theater Comeback Lags (WSJ)