Cineworld in talks with former Regal shareholders over payouts

A Cineworld in Leicester Square, London, Britain, October 4, 2020. REUTERS/Henry Nicholls

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Feb 1 (Reuters) – Cineworld Group Plc (CINE.L) said on Tuesday it had entered into discussions with former shareholders of its U.S. company Regal Entertainment over a possible rescheduling of the British cinema operator’s payment obligations .

The London-listed group said in September it would pay $170 million to shareholders unhappy with the price they received when the company took over the US chain in 2017 and created the world’s second-largest theater operator. Read more

To facilitate the talks, Cineworld said it has obtained covenants to waive any default resulting from non-payment of obligations owed to creditors, including certain holders of the company’s secured convertible bond due 2025.

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Cineworld, which has also been hit with possible damages of C$1.23 billion ($969.80 million) following a botched deal with Cineplex (CGX.TO), said it hopes a agreement could be reached with Regal shareholders within the period granted by the Waivers. Read more

The British company is struggling with around $8.3 billion in debt as cinema delays and pandemic restrictions keeping moviegoers away from cinemas have also hit demand, but it said last month that the success of “Spider-Man: No Way Home” boosted its sales. Read more

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Reporting by Juliette Portala and Pushkala Aripaka in Bengaluru; edited by Rashmi Aich

Our standards: The Thomson Reuters Trust Principles.

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