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I feel with the bankruptcies of Credit Suisse and Deutsch Bank. Being in chapter 11 now, might actually help Cineworld avoid the massive backlash in the markets. I feel a lot more companies will be filling for chapter 11 and the courts will get extremely busy. Including companies that directly deal with Cineworld.
Knowledge of closures has been known for a while. These are old cinemas, which needs a lot of work to update. Would have been closed, even if not in chapter 11. AMC will follow in offloading ageing cinemas and streamline their business.
Regal no longer exists as it did when they thought about the merger years ago before Cineworld bought it. The same deal now is what the Regal board rejected. Cineworld has created a web of companies. Each cinema is its own company. So the only way for anyone to get regal cinemas is to takeover Cineworld themselves. Regal exists in name only.
As for dilution of shares. Whatever plan Cineworld had died, when the first deal of paying off the 52% of junior lenders failed. The 48%, who are the main lenders do not want shares in Cineworld and have consistently reiterated this to Cineworld. They can wait for twenty to thirty years for their money. Reducing the yearly amounts. But ensuring they get all their money back plus profits on top.
Next few weeks will be back and forth. But nothing will be agreed. As all parties are diametrically opposed.
Not too mention the judge has to agree fully with whatever gets put before him.
This has a long way to go. Numerous parties will be different ideas about the best way for themselves.
I can see this bought by Amazon or another media company at a bargain price. Might be the only way all the issues can be resolved. Similar to the Sears case.
I suggest you look at the Sears case. Lenders wanted chapter 11 changed to chapter 7, as they would recover more of their debts with company broken up and assets sold off.
Judge refused. The judge has the ultimate power. The company is under the courts protection. The judge rules on all matters financial. His job is for the best for Cineworld and not the lenders.
Feel Cineplex story is a nonstarter. Probably aggrieved with delay to their case at best.
One of many issues for them taking on Regal. Is the chapter 11 covers Cineworld Uk. The judge is in charge of everything before him. Cannot separate Regal. Also Regal exists in name, but all elements are owned by Cineworld.
If they want to pursue a hostile takeover. They can. But there are bigger players interested in Regal and potentially Cineworld itself. The lenders will know of this and also know with the Sears case. The judge is the deciding factor.
Let us see what tomorrow will bring. Maybe clear up the picture a bit and reduce the speculation.
Now officially in the courts with chapter 11. Before insider information hard to prove and would take authorities too much time and effort to prove.
Now in the courts any such moves would be liable to stronger legal action and would be investigated.
Do not expect to hear anything till Friday and then the World will know what is going on.
Debt restructuring sounds like the 1 billion the debt lenders wanted paid off and the judge refused.
Will see what comes out Friday. Till then do not expect much movement in the share price.
How much is the RoW? What is the RoW and whom is it owed to?
784 million DIp should see them through for a few months.
No money went to pay off any debts. Judge stopped this.
Investing cube keep saying this will crash or rise. They do not know.
Friday more information should be revealed. Investors waiting on that. Look at the lack of buys and sells today.
Since entering chapter 11, things have probably not been going, how Mooky thought they would. IMO
The judge has a lot of control in chapter 11.
Considering Cineworld cited the cineplex case for the reason why they could not get financing. I would think the judge would want to see the trial concluded. Then either way, the cineplex trial is no longer hanging around.
I feel come Friday we will get a few RNS. IMO
Looks like Polaris has bought back in. Only 4% I know they have four weeks in which to report and then can even delay that. So expect a RNS in the coming weeks. They sold at around 14p and 8p a share. So probably bought back in when this hit 2p a share. They will probably get back to there 7% stake if they can and still have cash in the bank.
This is not dated, as Jangho sold out after Polaris. So looks current.
Big lenders will extend payback years to 20. Meaning they will make more money and get all their money back in the long term.
The 52% of lenders whom are not banks. Cannot afford to wait that long. Probably borrowed the money to lend to Cineworld. But cannot do a thing about it. Judge will not let them use the DIP to payback their loans. For numerous legal reasons. Too many for this board.
Landlords are probably highly leveraged as a lot of companies are with the availability of cheap debt. I am sure they are unwilling to alter lease agreements. But will have to, as long as they recover the money in the long term.
Then the cineplex appeal case concludes and synergies money gets wiped off. Then deals will be signed off. Till then I expect lots of speculation on this board, both the ramp and deramp. Neither will effect the share price or anything that goes on.
Share price will be in a holding pattern till then.
Wolf if you know everything, why are you wasting your time on this board. You should be leading the legal team for the junior lenders. There lawyers need you help. The judge has blocked them paying off their loans and now they are left exactly where they started before the chapter 11.
Check out the court records. Day one. He ruled the payment illegal. Check out all the press reports for day one. Day two is when 784 million was submitted to pay for running costs of Cineworld and gone was the 1.94 billion. Now go and look this up.
Please prove the money is escrow. As the 1.9 billion was proposed to the courts and rejected. The next day they came back with 784 million. There was no need to or allowance to send the 1.9 billion to a court approved account.
Judge blocked the 1.9 billion. Only 784 million in DIp. For the running of the company. Nothing has been used to pay back any loans. As the judge ruled this action illegal.
If the other money is being held. Will soon be returned unused. The DIP is also a credit facility. Money is there, but when Cineworld makes profits on movies, this goes to lay back what is used. So by Christmas All the Dip should have been paid back, what they needed to use.
Court papers.google it..also in all the press..
The judge ruled it illegal. A DIP can only be used for the running of the business. Nothing else. Educate yourself on DIP.
The billion cannot be used to pay off any loans. If being held. Can only be used to the running of the business. Will be going back to lenders, for them to pay back to the banks they borrowed it from. Their loans remain just that. They are bottom of the queue. HSBC underwriting the rights issue and loan facility for regal deal. Remain the main lender.