Member Info for Damodubya

March 12th 2020

"Cineworld boss Mooky Greidinger, started an earnings call by saying, “As you know, auditors are very conservative and are taking a very strong assumption. I’m not arguing with them, but if we look on the realistic side, to say we feel today that we are not standing on safe ground would be wrong.” However, he added that cinemas might indeed close. “It can happen, we see it coming, we see the changes every hour.”

He said that the company would not continue to pay full rent of around $50M a month should cinemas shutter. “We know the contracts and the laws and our partnerships with our landlords who have been with us for decades, so taking that assumption is very, very conservative.” He later added that in Poland, for example, Cineworld will not pay rent “at all” while cinemas are dark."

https://group.vattenfall.com/uk/newsroom/news-press-releases/pressreleases/2020/development-consent-awarded-for-norfolk-vanguard-offshore-wind-farm

That was the point I was trying to make...if they already had debt 100M short of a breach in Feb....then how on earth would they not have incurred the rest by now is beyond me.

Robbing Peter to pay Paul comes to mind.

The article is a direct rip from Vattenfall website...

The Lamprell Quote is word for word the same (near enough) as the Seagreen press release.

ta mate.

The FT reported "When it last reported figures in February, Cineplex had net debt of $625m."

It's reported that Cineworld's cash burn is around $100M a month...so I think it's fair to say that by now Cineplex would be not in the best position to keep the debt threshold above the requirement of clause 5.

Apologies....they HAVEN'T cited clause 5...but it is suspected.

Clause 4 breach is still the kicker.

Cineworld have already cited reasons for the basis of defence as per the last announcement..

"Cineworld has become aware of certain breaches by Cineplex Inc. (“Cineplex”) of the
arrangement agreement relating to the Acquisition (the “Arrangement Agreement”). In
addition, a material adverse effect has occurred with respect to Cineplex."

The primary reason they have pulled the deal is because of a breach of clause 5 - debt, with the clause 4 - MAE (COVID) breach being the kicker, so to speak.

https://www.cineworldplc.com/sites/cineworld-plc/files/cineplex-inc-acquisition/update-on-proposed-acquisition-of-cineplex-inc.pdf

I'm not worried, I see this as another buying opportunity (maybe).

For those who are interested...P62 https://www.cineworldplc.com/sites/cineworld-plc/files/cineplex-inc-acquisition/arrangement-agreement.pdf

"Section 6.2 Additional Conditions Precedent to the Obligations of the Purchaser
The Purchaser and the Parent will not be required to complete the Arrangement unless
each of the following conditions is satisfied, which conditions are for the exclusive benefit of the
Purchaser and may only be waived, in whole or in part, by the Purchaser in its sole discretion:

..............

(2) Performance of Covenants. The Company has fulfilled or complied in all material
respects with each of the covenants of the Company contained in this Agreement to be
fulfilled or complied with by it on or prior to the Effective Time, and the Company has
delivered a certificate confirming same to the Purchaser, executed by two senior officers
of the Company (in each case on behalf of the Company without personal liability)
addressed to the Purchaser and dated the Effective Date.

(3) Dissent Rights. Company Shareholders shall not have exercised their Dissent Rights in
connection with the Arrangement with respect to more than 5% of the outstanding
Company Shares.

(4) Material Adverse Effect. Since the date of this Agreement, there shall not have occurred,
or have been disclosed to the public (if previously undisclosed to the public), a Company
Material Adverse Effect.

(5) Limit on Indebtedness. As at the Effective Time, the Company shall have no more than
$725 million outstanding under the Company Credit Agreement (which shall exclude the
item set out in Section 6.2(5) of the Company Disclosure Letter). "

Well, never a dull day here. Cine has well and truly kept me entertained.

Without going into the facts , purely an uneducated opinion, I see this as a last ditch attempt by Cineplex to keep themselves alive. I think it goes without saying that Cine would have took legal council before pulling out on the deal.

Could it mean we end up purchasing them on the cheap anyway? Who know at this moment.

The article is a fabrication taken from the the Vattenfall website and the Seaway 7 statement from Lamprell.

Ah well... nevermind.

Any truth to the the mystery article?
Incoming RNS ?
When will the stock settle down and move (up or down)?

....Under the assumption they are understaffed or have not simply laid off current roles?

It's sub 61...I'd say yes. It'll probably jump above this at some point next week even if we get a 50's drop. Quick money out, back in...

It's been the same since April.

Sustained increase in COVID cases in the US and a cautious approach by State Governors will push down on the price keeping it much the same as this week.

Same.

Short = Today
Mid = Tomorrow
Long = I'm blue again.

Nailed it!