UK’s Cineworld gets further debt reprieve to ride out closures

Cineworld, the world’s second-biggest cinema chain, last month closed all of its movie theatres in Britain and the United States and left as many as 45,000 workers unemployed for the foreseeable future. — AFP pic

LONDON, Nov 23 — Britain’s Cineworld Group has secured waivers for its debt covenants until June 2022 along with US$450 million (RM1.8 billion) in new loans in a deal to ride out the Covid-19 pandemic which also sees it issue equity warrants worth around 11 per cent of its share capital.

Cineworld, the world’s second-biggest cinema chain, last month closed all of its movie theatres in Britain and the United States and left as many as 45,000 workers unemployed for the foreseeable future.

“We look forward to resuming our operations and welcoming movie fans around the world back to the big screen for an exciting and full slate of films in 2021,” Chief Executive Officer Mooky Greidinger said.

The cinema operator, whose base case scenario assumes it could reopen its doors by May, said its debt measures have given the company over US$750 million of extra liquidity and reduced monthly cash spend to about US$60 million.

The debt commitment waivers and new credit line was coupled with an extension of its revolving credit facility to May 2024, and an issue of 153.5 million equity warrants to lenders.

The warrants could translate to a nearly 10 per cent stake for its lenders, if fully exercised, the company said. — Reuters

Source: Malay Mail