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No you cannot. U.K. law is strong on where a company can be listed.
The anti terrorism laws have shut down lots of loopholes like this. As these groups were funded by individuals and companies using the Cayman Islands as a hiding place. Not only that but the Cayman Islands secrecy has also diminished as they have to inform relevant governments of accounts now. The world of accounting has changed since Enron and 9/11.
Ultimately it does not matter what happens in America. If they fail to meet legal requirements in the U.K.
They have still not put anything forward in the U.K. apart from trying to move HQ to the Cayman Islands and was rejected.
They will need to get share holder vote for this plan. Which will be rejected and back to square one.
U.K. authorities blocked this. Cineworld tried to move U.K. headquarters to Cayman Islands. This is an act of a criminal organisation.
No legitimate business based and listed in the U.K. would try such a thing.
Can see AMC going into chapter 11. The whole strike issues have massively changed the landscape for Cineworld. Now the lenders are facing an impossible task with the current plan. Even if all things go through. They have to be crunching numbers and know there will be no interest in a rights issue and them raising the 1.4 billion has got a lot tougher.
If they could lose the 4.5 billion and survive they would be pursuing full bankruptcy. Now could face over 6 billion and go bankrupt in 2025. Lots more court action and discussions to be had across the whole of Hollywood and not just with Cineworld
Press are just reiterating what Mooky has said. Legally their lawyers have told them not to add or put in anything that could see them the wrong side of the law. They will wait till it all goes wrong for Mooky and then give an in-depth piece.
Hollywood is going to be a place of nightmares in the coming months. Next year will see Disney vs Comcast in the law courts over Hulu. This year will see them avoiding releasing the real viewing figures and money earned from streaming, as it will deeply affect their share price. When the truth is told many investors will bail on the studios.
As for the lenders. They may try and force through the plan. But if there are some smart brains advising them. Seeing how they will never get 800 million for rights issues. The borrowing costs for the 1.4 billion credit facility they promised will be much higher and then the new listing will see the price of the new company crumble from 2.4 down to almost nothing. So would advise them to either seek full bankruptcy, if they can afford to write off 4.5 billion. They still need to pay their lenders in 2025/26. If not, then renegotiate the plan.
This should have happened two weeks ago. Amptp played Sag for fools and got an extension In order to get the premieres of Mission Impossible, Barbie and Oppenheimer out and cast interviews done and dusted.
This strike will change the face of Hollywood and is going to get bitter and toxic over the coming months.
The studios need Cineworld open and not to go into administration and close the cinemas. Even though Mooky feels he can instigate chapter 11 over here.
Cineworld has had three weeks to apply for admin. If nothing is done in next few weeks. I expect another BS statement from them stating they hold true to this plan but delayed because of the strike.
Sit back and watch Hollywood turn against each other over the next few months.
Goldman Sachs still hold 2.75% if anything untoward is going on. There lawyers will be all over it. Plus all the other investment funds still holding.
Mooky is trying to use administration to avoid going to share holders for their vote on approving any deal.
There will be ongoing litigation running for years.
Next few weeks will decide how the events will play out.
Either way, feel massive litigation lawsuits will be ongoing for the next few years.
Next week is interesting for Hollywood. If the actors go on strike and the mood darkens. Watch a lot more entertainment companies file for bankruptcy protection.
Say the miracle plan for Mooky goes through. No one will buy into the new company at the moment. The rights issue will be a dead duck.
The share price of the new company will drop like a stone on listing and never recover.
Wall Street will massively scale back its investments into Hollywood.
I am interested why Cineworld now refuse to comment to the press, whom are probably asking them really pertinent questions about how they intend to carry all this out.
I am sure companies such as Vodafone who has over £25 billion in debt will look to see how this plays out and whether Cineworld sets a legal precedent for which they and others can use to offload billions of debt and continue trading all at the expense of their lenders. Next few weeks will hopefully be active.
Cineworld holding is not a shell company. If so they could have wound it up long ago.
Come next week unless an agreement is found with Sag and Amptp. Then Hollywood will effectively shut down. Some predicting till the end of this year. So the blockbusters being shot for next summer will be gone. Possibly some studios will use chapter 11 to refinance their massive debt piles
Also have the small matter coming up of Comcast and Disney clashing over the purchase price of Hulu. Currently Disney have to pay 9 billion in January . Comcast feel it should be 20 billion +. Can see this go into lengthy litigation.
What ever plan Mooky had going into Chapter 11 last September needs to be drastically revised soon.
I do not get how Cineworld are trying to propagate chapter 11 into the UK and think they can get it through.
If Cineworld goes into administration what about the staff. They work for Cineworld. Their contracts cannot be changed over. They will need full redundancies to be paid to them.
Crown Uk already exists as a business. Mooky would have been wise to spend five minutes looking through companies house to find this out.
Hollywood studios will benefit as the 50/50 box office split is with Cineworld. Any new company will have to renegotiate this. The studios could demand over 60% of the box office.
They are looking to list the new company on the UK stock exchange then delist and list on the US exchange. Lots of these transactions seem rather dodgy and not guaranteed to meet with favourable response from the authorities. Not to mention Mooky and Israel gaining 7.5% shares in the new company. Possibly rising back to 20%. Until they submit the full 255 page plan to the UK authorities to approve or decline. We will not know.
I have never heard a company state it will enter administration before. I always thought in the UK you cannot be solvent to go into administration. Which Cineworld is.
The next few weeks will be interesting. If Cineworld do not apply for administration this week, I envisage they will string it out till the end of July.
American judge cannot do anything over here. When Mooky finally submits his application to UK authorities, which should include the plan in full. To go into administration you need to be bankrupt. Cineworld currently are not. Mooky trying lots of things never done before.
Hence why the media is merely reporting what Cineworld has put out. Their lawyers have advised them not print anything other due to the precarious nature of it all. Until Mooky attempts to put Cineworld holding into administration. Nothing will happen. Cannot see how he can class the cinemas as assets, as they are fully listed companies in their own rights. This will run and run.
If the studios have a voice in this. They will have urged Mooky to wait till the end of July. As they need box office hits in the films due for release and cannot afford these to fail.
Today’s RNS shows what Mooky’s plans are at least, or what he is dreaming of. The law and reality might have other ideas for him.
What is telling is this was meant to be wrapped up this week. Now they are saying July, but no specific date. If nothing comes forward by the end of next week I can see no action till the end of July and even then maybe this gets pushed to August.
Listing on the UK even though Mooky wants a US listing is strange. Cannot see how after screwing UK shareholders, if this plan somehow goes all the way through, that they expect UK shareholders to invest 800 million into affectively the same company. Just with a different name, but the same debt levels. Crown will have to pay the debt off in 2025/26.
This is getting far more toxic every time they release a RNS.
But after next week Mooky becomes an irrelevance. The shutting down of Hollywood productions across the board, with actors and writers strikes. Will see the media and investors far more concerned about a lot more aspects of the entertainment industry. Which has far deeper impact beyond little old Cineworld.
The next few months are going to be bumpy.
They will apply for administration. But UK authorities would want the whole business and then creditors to take control of the company. Not just the holding company. Also the company needs to be bankrupt. Still has money on the books from DIP and revenue earned.
Can see this going really messy. And be in and out of the courts for years. Not what the studios need when they are about to shut down all productions for months.
What happens in America, still has no effect on the UK. Cineworld need to pass UK law and regulations and have done from day one. They have put off this for nine months. They are a UK company listed on the UK stock exchange. Nothing can change this. No matter how much Mooky wants this. Reality is the American judge has no jurisdiction on a UK company.
U.K. company listed in the U.K. American judge has no jurisdiction. This has been the issue Mooky has been ignoring and avoiding. All the stuff going on in American bankruptcy court has no change to what he has to do or can do with the company. Needs to adhere to U.K. law and authorities. No matter how much he wishes he does not have to.
Cineworld have to get things passed in the UK. Which they have avoided for the last nine months. The American courts cannot help Mooky. It has always been the Elephant in the room and one Mooky cannot escape. When they turn down the deal. He will be forced to sell up.
Now Cineworld have to go to the U.K. for approvals and this is where they come unstuck.
The U.K. lawyers would have advised them from day one, what they had to do. Since then they have wasted millions in lawyers fees in America. The judge’s statement is what I want to read. I believe it will show he would not stand in the way of the plan if the relevant bodies approve it.
Will see when Mooky summons up the courage to put stuff forward to the U.K. authorities.
From July if Sag goes on strike with the writers, which seems likely and then directors guild follow suit albeit begrudgingly. Then summer movies will get delayed. As actors can do no publicity for the films and cannot attend the premieres.
Which is another curve ball in this process. Come Autumn, might see a couple of studios join Cineworld in the bankruptcy courts.
Cineworld is listed on UK stock exchange and holding company and all the companies that matter registered in the UK. So have to go by UK law. Mooky is cursing this and did bemoan this months ago, saying he wished they were listed in America to be a meme stock. But basically knew the share holders have far greater protection in the UK. He has yet to do what he said he would in apply for a CVA to renegotiate rents in the Uk, he has carefully avoided any legal action in the UK. As his UK lawyers have stated what he can and cannot do, mainly cannot do. They will not do what they legally cannot do. Hence why he hopes the US lawyers can help him stay in charge of the company. Once this comes before the UK authorities, his plans will fall apart. Then again Marvin will dismiss his plan of the lenders getting all the shares and yet also being owed all the money as well. In fact the plan has no fresh money from lenders. It lives or dies with the rights issue. And probably is caveated to the high heavens if this is not fully filled, the lenders hold the right to withdraw. If this plan was workable, the judge would have approved this by now. Although he probably knows the lack of jurisdiction he has to a UK company and should be speaking to UK authorities about the deal, can see this all blow up in the next few weeks..