(Alliance News) - Cineworld Group PLC on Monday said it has further bolstered its balance sheet with a new USD250 million secured debt facility due 2023 from a group of private investors.
The cinema chain operator, which has been hit hard by Covid-19, said the new USD250 million loan together with the covenant amendments and revolving credit facility increase of USD110 million announced in May "further strengthens the group's balance sheet as cinemas begin to re-open around the world".
With the easing of lockdown restrictions in key jurisdictions, Cineworld is excited to welcome customers back to cinemas and enjoy the best place to watch a movie, the FTSE 250-listed company added.
In May, the Brentford, London-based company had announced waivers from lenders over certain banking covenants, a new USD110 million loan and approval for USD45 million through the UK Coronavirus Large Business Interruption Loan Scheme. In addition, the company had commenced a process to access USD25 million through the US government CARES Act.
Cineworld earlier in June had said it would reopen all of its cinemas open by July, with some being opened in the last week of June.
The company had said it would modify its booking systems to ensure social distancing within and throughout its auditoriums. It also intends alter its daily movie schedules to manage queues and avoid the build-up of crowds in lobbies.
Cineworld-owned cinemas in Czech Republic and Slovakia will open their doors on June 26, in Poland and Bulgaria on July 3, and in Israel on July 9. UK and US cinemas will open on July 10.
The dates for Hungary and Romania are still to be confirmed but are expected to be in the week of July 3.
The cinema reopening plans come as Cineworld faces legal action over its decision to terminate its CAD2.8 billion deal, about GBP1.6 billion, agreement to buy Canada's Cineplex Inc due "certain breaches" of the acquisition deal.
Toronto, Ontario-based Cineplex had hit back at the termination of deal, saying it would start legal proceedings against Cineworld and seek damages for breach of contract.
The takeover would have created North America's largest chain of movie theatres to better compete with AMC Entertainment. It would have added 165 cinemas to Cineworld's existing 786 sites and 9,500 screens. AMC Entertainment owns or operates about 1,000 theatres around the world.
Shares in Cineworld closed flat at 77.36 pence each in London on Friday.
By Tapan Panchal; tapanpanchal@alliancenews.com
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