RE: Restructure plans1 Sep 2022 12:18
In my opinion Cineworld are a lot different to the companies that have already gone bust like McColls, Debenhams, Thomas Cook etc! And this is why they will refinance their debt!
Revenue set to increase in 2023 back to Pre covid levels of $4.5 Billion (None of the companies that went bust had the means to double turnover and make a profit in 12/18 months and service debt this is why they all went bust!)
With $4.5 Billion profit and cuts across the business they should get to Net profit of $200/300 Million (And maybe even go back to paying a dividend but I do doubt this will happen for a few years, as I think they will start throwing money at the debt to bring it down! Which in my opinion is the right thing to do)
Biggest shareholder is the Greidinger Family, and their shares were worth around $1 Billion pre Covid! The biggest motivator in life is money and the Greidinger Family will want to do everything they can to get their investment back which currently stands at £9.5 Million! That is why they will try everything to get this sorted and keep their large stake in the business!
To my knowledge Cineworld are paying suppliers which is a very good sign!
Screen has spoken to numerous suppliers and have said "Everyone with whom Screen has spoken, agrees both Cineworld and Picturehouse are probably profitable on a week-by-week basis – and the same may be true globally, including Regal Cinemas in the US."
"“My understanding is that the cinemas are mostly operating at a profit,” says a second senior distribution source."
From a major Supplier of Cineworld
“Obviously, we’re monitoring the situation on a daily basis. But at the moment it’s all rumours, they haven’t actually done anything,” they continued. “We’re being very supportive and doing everything we can to help both those circuits.”
These are only my opinions and are based on what I have read. GLA
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