RE: Cine weighs rival rescue plans from lenders,centerbridge20 Nov 2020 17:59
From Telegraph article:
Hopes for a rescue of Cineworld are rising after it emerged the world’s second-biggest cinema chain is in talks to secure lifeline funding from two competing groups.
Hedge funds, which provided a $250m (£190m) loan in June, have offered sufficient extra funding to help the company survive the pandemic.
A second group of longstanding lenders is working on a rival proposal, according to Bloomberg, which first reported the proposals.
The lenders are said to have written to Cineworld earlier this month, complaining about the company pledging assets to the hedge fund group that includes Centerbridge Partners, Arcmont Asset Management and SandGrove Capital Management. The lenders reportedly claimed they have security over the assets in question.
Cineworld declined to comment.
The future of Cineworld, whose acquisitive growth has been masterminded by Israeli businessman Mooky Greidinger in recent years, was thrown into doubt as the pandemic hit earlier this year.
The prospect of two competing factions signals Cineworld will secure at least $200m, an injection that Mr Greidinger recently said the company required.
One source said that a formal deal announcement was “imminent”.
Mr Greidinger wrote to Boris Johnson in October, urging him to offer fresh support, sparking fears for Cineworld, which employs 5,500 people in the UK and 45,000 globally.
Earlier this week, the Financial Times reported that Cineworld was considering a radical restructuring to reduce its rent bill in Britain.
It was said to be planning a company voluntary arrangement to shut some sites, while slashing rent bills for those theatres that remained.
Shares closed 4.3pc higher at 46p, valuing Cineworld at £632m. The stock began the year at 222p.
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