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That’s just it. Realistically we have no other choice unless you want to sell with 90%+ loss. Very crazy week to say the least.
Best case scenario is CINE announces that the rumours are false, but at the same time they have supposedly hired the administrators already. It is just a case of whether they push the button and start the process. It seems disingenuous if CINE says ‘nope, no bankruptcy’ and then they have already hired administration in.
Perhaps CINE is waiting for a rescue package at the eleventh hour, but how they got to this point is beyond me. Yes, they had a lot of debt, but when compared to other cinema operators we were in line. How does a company manage to announce potential dilution/bankruptcy whilst others are reporting profit, I’ll never know.
Praying for a change of heart from lenders and management, and hopefully a positive RNS on Monday. Just watch what the headlines are saying because some are already reporting that the bankruptcy has taken place, which is not true.
"at the same time they have supposedly hired the administrators already."
they have hired advisors , which they are obliged to do as part of preparations should an event occur that negotiations fail
..the company doesn't hire administrators, those who are owed loans etc do, in order to obtain some of the debt back from asset sales etc
@pokerchips, thanks for the correction there. So you still think it’s possible for CINE to reject the rumours of bankruptcy on Monday?
In my opinion it will be an RNS stating they are negotiating with lenders over a debt restructure that will help them get through the next few months until the larger Block buster films come out. It is in no ones interest to let this go into administration.
Thank you @AJones, let’s see what happens here.
Fingers crossed AJones
As Boris said 'once the herd moves, there's no stopping it'.
Exactly GLA :)
I thought I would not look at my shares until Oct to see where we would be. My work friend contacted me today to see if I had heard about Cine. This is unexpected and sad. Luck has it that I can afford to lose my stake so will be just staying put not that I have a choice now. To the peeps who have invested savings I'm very sorry. But health is more important than wealth. I find it all very strange as I didn't think we were doing too badly so something I feel is afoot.
Don't worry about it. I lost on Carrilion, Thomas cook and now maybe this. If you dance with the devil...
Strange haven’t yet seen a response from the Company to refute the WSJ comments. That said most Shareholders should hopefully have escaped already given the inevitable restructuring & dilution thats needed to survive under their mountain of debt and Lease obligations. Not looking good.
" So you still think it’s possible for CINE to reject the rumours of bankruptcy on Monday?2
mountainous
the possibility of failing to "restructure the balance sheet through a comprehensive deleveraging transaction" are there under these circumstances, whether it is with Cine or anyone else......negotiations can succeed or they can fail.
They appear to be working on a debt for equity deal which would inevitably result in a large dilution situation for current holders...but at 3-4p shareholders can see the effects of that already , in extreme terms
the share price has priced in the risk of negotiations failing , but you have to ask yourself.... who will be the winners if that happens .... who really benefits if all sides fail to agree the negotiation terms ? ...few winners in all fairness
the debtors clearly want the best deal they can get and they may well think if they don't get it they will through a bankruptcy court procedure ( at an expensive cost in time and money terms to all)....so ... current shareholders and all stakeholders are battling in the background to hammer out what all can agree on....or not
preparing for a bankruptcy is normal procedure, even if you end up not needing it....so they would find it hard to dispel rumours that they are preparing what they are probably required to do, in advance of a situation of having to need it
I thought to myself I should probably go to the cinema before they all are as dead as blockbuster. Not a single film is showing I would want to see. Prey is the best film I have seen lately, and Disney sent that straight to Disney Plus.
Is it a case of the creditors putting the squeeze on cineworld or vice a versa for better terms.
Thought they said in the rns they were paying obligations.
And footfall maybe below expectations but should be up from last yr going by there own reports and box office stats
"Not a single film is showing I would want to see."
It is mid August and the school summer holidays.... probably not unusual ....they dont tend to release the big money earners then......look at the rubbish Netflix is throwing out before the key "bums on seats" season arrives in the autumn
"It is mid August and the school summer holidays.... probably not unusual.. they dont tend to release the big money earners then"
Not sure about that one. Bit of a captive audience lots of bored kids with nothing to do and Mums wanting something cheap to keep them happy. Though ticket prices have grown so high its not longer the case. I honestly think they priced themselves out of the market.
BO Mojo has it at 280m for US August month to date. Expecting a 450M month no different from all the slow months in the last year.
So many wise men showing up today
Was just looking over on the reddit site came across this
mohwhip
4h
Yoo all I called to the cineworld share holder line ‘+44 371 664 0300’ the don’t know anything about a bankruptcy fill… I’m not even kidding was in a bit panic ??
Not sure if it's TRUE or not but anyone on here contact them
@Toddjustin
I wish posts like yours could be 'Unrecommended' as it'd save us a whole load of reading time knowing that you're utterly clueless. Go look at the attendance figures for the blockbusters that have come out post pandemic, they more than prove your post to be sheer nonsense. When high quality films worth watching on the big screen are released people flock to the cinemas. Blame the studios for lack of content if you're looking to lay blame at anyone.
What difference does it make, cine is incapable of making money, how they even became 2nd largest cinema chain is beyond me. While they keep on opening more sites ridiculous
there is a future for cinema ...it is all about who has control of them and who gets the terms of benefit from them ..
Netflix spent supposedly $200m on The Gray Man which should ideally have been seen in cinemas to get the best user experience from it ...I watched it on TV and the experience was no where near what it should have been...it is always because Netflix etc want far better terms from cinemas than the cinemas want to allow them
Tom Cruise refused to allow Top Gun : Maverick to show on streaming and look at what money it brought in....
The streaming giants are killing cinema to get it into their own hands ....under their own terms
The chances of cine going bankrupt are very small, their sites are very strategically located, other businesses get a load of business of them, ie. restaurants and bars located next to them. They bring a lot of footfall, to these retail parks.
Today, in my opinion, was a real example of shares being stolen of small investors. Moment this dropped, I went in heavy, it was really impossible to buy under 2.50p, most I got were around 3p.
Yes, I might stand to lose a lot of money, however, if I’m right, I stand to make a lot lot more money. Let’s see what next week begins.
Imho DYOR GLA
“lots of bored kids with nothing to do” isn’t exactly a ringing endorsement for procreation.
Spare a thought for the thousands of Cine staff most of whom are young and on minimum wage some will probably of been in a company share save scheme that they hoped would reward them well in a number of years, if Cine does go into administration Mooky and Co will no doubt have sufficient funds to live on, the loyal employee's probably not.