Suffolk's Cineworld sites could be at risk after the company collapsed into administration.

Last year, it was announced that the cinema chain was set to file for bankruptcy and on Friday the business provided an update on its current circumstances.

Cineworld hopes to be back from bankruptcy protection before the middle of the year, but the debt-ridden business expects any deal with its creditors will wipe out its shareholders.

The world’s second-largest cinema chain has accumulated six billion dollars (£5 billion) of debt.

Based on the discussions it has had, Cineworld said “there is a route” to emerging from the so-called Chapter 11 bankruptcy proceedings.

But, it added: “The company does not believe that there will be sufficient creditor support for a plan that contemplates any recovery for equity interests.”

On Friday, Cineworld said: “The company has now received non-binding proposals from a number of potential transaction counterparties for some or all of the group’s business.

“None of these proposals involves an all-cash bid for the entire business.

“The company is reviewing such proposals in conjunction with its advisers and key stakeholders and, whilst no decision has been made as to whether to pursue a sale transaction, and the terms of any such transaction remain uncertain, based on the proposals received to date, it is not expected that any sale transaction will provide any recovery for the holders of the company’s equity interests.”

Mark Cordell, chief executive of the Bury St Edmunds Business Improvement District:

"It's disappointing, although not wholly surprising as I knew the international group was struggling. I am hopeful that the Bury St Edmunds cinema would still continue to trade as it is an important attraction to town. The new Everyman cinema is, however, opening underneath Primark in the Arc shopping centre."

All Suffolk cineworld locations at risk

  • Bury St Edmunds
  • Ipswich
  • Haverhill

Shares in the business dropped by a third in London after the news on Friday.