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School holidays, would have taken the kids to the cinema a couple of times. The alternative, VOD- why pay when I can have for free. Got trollz World tour, witches and scoob, should keep them entertained for a couple of hours. Oh yeah and I got the new Borat for me- just in case it wasn't clear, I didn't pay, they were all free. I would have paid to watch them at the cinema, but not at home. I know that within 24 hours of a film being released on Pvod, I can have it for free in Full HD. ISN'T THE TINTERNET AMAZING. LOL
IDW: "It is Really weird that rampers are in denial about Cine's level of debt"
I personally find it "really weird" that someone has dedicated an inordiante amount of time to posting the same baseless assertions . This has been said before - but i will repeat the possible reasons:
1) Such people are paid to make such assertions in the hope that naive investors will sell. I suppose that their are worse ways to make a living (but not many)
2) Such people are lonely and use this BB as a primary source of company and social interaction. If this is the case then I am sorry for your predicament but would advise that posting nonsense on a BB will not fill that dark void of lonliness and self loathing. Please seek professional assistance from a suitably qualified medical professional.
concerning the level of debt - it is not a secret! it was there pre-covid and will be there post covid. The issue is one of debt servicing. You don't need to be an analyst to know that at present the debt is not serviceable. However, Cine can be readily differentiated from companies that have been in similar positions and 'folded'. Other entities that had debt piles went under because their service offering and business model did not adapt to changing habits of consumers. - Thomas Cook, did not adapt to the increasing prevelance of people booking online and also book flights + accomodation sepeartely. Debenhams was doomed because it was a bland retailer that offered nothing instore that couldnt be obtained online.
Cine, pre covid was a healthy and profitable company. It's service offering is distinct from PVOD and SVOD. FTI's report (referred to in my previous posts) concludes that PVOD and cinema are not fighting for a share of the same pie, rather they complement each other and each has a place in revenue generation for studios. This is not to say that cinema going will not be squeezed by PVOD in the long term. But in the short to medium term - cinema is not going anywhere.
So in conclusion, lenders know that as far as Covid is concerned we are now at the beginning of the end. Cinema goers will return, revenue has not been lost, merely deferred,. Therefore, there is very little incentive for the lenders to push CINE over the edge.
I’m not sure if FTI Consulting’s article on the economics of film was posted when it was published (3.9.20), if it wasn't then all cine holders should read, if it was then it serves as a valuable reminder of the fact that theatrical releases remain crucial in revenue generation for studios.
the significance of the article is amplified by the fact that about a month after the article was written, the banks appointed FTI to advise them.
FTI's view is that whilst PVOD has a definite role to play in the economics of film,it is too early for studios to throws all their efforts behind PVOD to the detriment of cinemas. FTI Advocate a blended approach (at least in the medium term) in which cinema is the primary sourec of revenue with PVOD, SVOD being complimentary streams of revenue.
I'm long on Cine. GLA, DYOR.
https://www.fticonsulting.com/~/media/Files/emea--files/insights/articles/2020/sep/economics-film-changing-dynamics-covid-19-world.pdf
75K should have been £175k - what's a 100 grand between friends :)
@ RealisticInvesto - Cines Barrister is '35 years call' - surpised she isnt a QC - but there are plenty of good barristers that aren't QC within 20 years of call. to answer your question, her brief fee in a high court matter like this will be circa £5000 for one day hearing and then general advice and consideration of documetns at about £300 - £500 per hour. Also the solicitors will charge around £400 per hour for their work. In a matetr like this, if CINE lose their legal costs could easily be £75k+
@ shorterguy, you seem to be missng the point completely. Your comment, to which I responded, implied that the landlords must have a good case if they chose to pursue Cine. I am merely pointing out that your logic in assuming that the landlord must know what they are doing is flawed, especially when it comes to litigation. If Claimant's followed their lawyers' advice then there would rarely be any litiagation.
The choice to pursue litigation in this instance is that they cannot be seen to be a 'soft touch' and must pursue Cine as opposed to any intrinsic legal merit to their claim
@ shorterguy - i'm a lawyer who has dealt with a substantial amount of High Court Litigation. Litigants are often 'dumdums' (as you put it). The size, wealth or stature of a litigants has very little to do with their aptitude or lack therof when deciding to pursue litigation.
Without seeing the actual documents difficult to amke a judgment. But based on the FT article, Cine's position is arguable and has a basis in law
Morgan Stanley!!
£125k @ 55.13 average
MARKET REPORT: Cineworld shares fall as secretive Chinese tycoon hikes his stake in the debt-laden cinema chain
The plot has thickened at Cineworld after a secretive Chinese millionaire hiked his stake in the cinema chain.
Liu Zaiwang made his fortune in construction business in the 1990s during the country's building boom.
But his interest in Cineworld since the Covid crisis triggered a catastrophic drop in its share price and has stoked speculation he could bid for the beleaguered and debt-laden giant.
He built up a 5 per cent stake over the summer through his Jangho Group vehicle. This has now been beefed up to 8.6 per cent, according to a stock market filing yesterday. This makes the enigmatic Zaiwang, whose wealth is said to top £610million, the company's second-largest shareholder behind chief executive Mooky Greidinger.
Rapidly building up a large holding during a crisis often suggests a takeover could be on the table - but his intentions are still unknown.
What is clear is that he made the move on Monday, when Cineworld confirmed reports that it would need to shut more than 660 cinemas following the latest delay to the release of the James Bond film, No Time to Die.
https://www.thetimes.co.uk/article/cinema-giant-cineworld-to-shut-after-007-fiasco-d2rvdxjgw