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Cineworld is avoiding dealing with UK. As Cineworld’s UK lawyers have told them things Mooky does not want to hear. He is hoping that what ever deal he manages to get through American courts. The UK will accept. This has not worked for Microsoft. Will not work for him. Let alone the current plan will be rejected by the court. I doubt Mooky has a plan B.
Hollywood will soon be on strike come the end of June. With directors and actors following in the writers wake. So sit back and watch a lot of lawyers get rich, while nothing much happens.
Lots of legal stuff to go. Judge has not approved the plan as of yet and probably will not.
They need $800 million from rights issue. Let alone a lot of other things.
Writers strike will start next week. Actors and directors strike to start from June. So Hollywood will shut down till agreement’s are settled. Possibly three months or more. So will see the delay to Summer movies being released. The lenders will then see the plan of raising $800 million disappear. And there plans for Cineworld with it.
Expect Cineworld to stay in chapter 11 in America till next year. Unless the judge forces through a sale.
Lots of holes with the plan submitted.
Main one is zero debt is being cleared. Lenders only agreeing to meet debt obligations for some of the debt. But this not due till 2025/2926. 800 million rights issue to clear DIp that has been spent. Only offering a debt facility, not pumping in any money. Trying to take 100% of the shares for zero input. Cineworld’s debt will increase and not decrease with this plan.
Basically this was the only option to let Mooky run the company. But the lawyers would have told him, this has little chance of success. But would create this plan and submit it, as they are getting nicely paid.
I expect the judge to either reject this plan outright or make heavy amendments.
Then there is still the need to go before UK authorities and the stricter regulations. This saga will run till the end of the year now.
If the writers strike occurs in May, then lenders might get cold feet. If Hollywood shuts down for a few months.
Judge has say on whether this is approved or rejected. Lenders do not get a vote.
Judge is judge, jury and executioner.
But then it has to go to the U.K. after any plan or decision and like Arm holdings can be rejected by the U.K. authorities.
As Cineworld is a U.K. company
Going by article, they feel agreement will be rejected by the judge.
The 4.3 billion is to cover debt, not debt for equity swap. The wording is what intrigues me. They stated 83% , but again used there old trick of lenders and not debt. Only 71% of debt covered. But nothing about paying off the 1.7 billion. The 1.4 billion credit, is basically an overdraft facility so not putting in fresh money, as they are not looking to use this. The only money going in is the 800 million rights issue. But that is a big if. Lots of times rights issues, are followed by more rights issues. Throwing others peoples money at the problem.
Not too mention 255 pages, seems excessive, so more than likely stacked with caveats and legal clauses to contradict their statement.
Can see this situation run and run.
IF the writers strikes kicks off from May 1, could see any rights issue fall apart before it even starts. Also would see delays to movie releases and productions shut downs.
Nothing has gone before U.K. authorities. Cineworld has consistently avoided this. This is a U.K. company and at the end of the day the final day is with U.K. authorities and can reject anything put before it that is not legal.
Judge still to rule on proposal or stop sale and auction process.
Next week and beyond will be interesting. Still lots up in the air. The only clear thing is Mooky’s intentions.
Another interesting thing on the horizon is the potential writers strike over streaming residual payments. Which will see Hollywood shut down. This will affect cinemas going forward.
No such thing as credible source. FT article had people familiar with company. Never named them. New saying to replace some people say. Basically journalistic attempt at giving credibility to a story sent by someone keen to influence people through the article.
No investor working for Goldman Sachs or the like takes what is written by the papers. They do their own research and invest from that.
Deals signed by studios with the theatres agreeing 45 exclusivity. Gave them 50% of the box office. Previously each film’s box office was negotiated, but generally studios took 60% of the box office to theatres 40%. But cinemas make profit on popcorn and drinks.
These deals will not be open to new owners of ROW, if this even happens.
All stories in press and people speculation on here, shows there is widespread uncertainty.
The 10th will see bids for the whole company come in. ROW brings in the minority of revenue to Cineworld. But less even less to any buyers, as studios will not offer them 50% of the box office. They would be lucky to get 40% off the studios. The revenue for major studios in these area’s is no great loss if they lose it. Main regions are US, UK, China, Japan, Canada and Australia.
But I expect posts on here to ramp up on here next week as well as in the press.
Will wait and see what comes out on the 10th and then which companies go through to the auctions process on the 17th.
But did Cineworld. In its advertising, induce lowball offers. As that is what they were trying to get, to then go to lenders with the deal they planned all along. With Amazon potentially on the horizon and other bigger players. I feel the lenders will wait till April 10th and all offers in to decide.
As well as any deal will need to get share holder approval as chapter 11 process is yet to be approved by UK authorities and thus UK regulations need to be adhered to.
Am sure he is looking at Cineworld as offers more value. But will not go to press about it. I can see AMC and Cineworld sold off outright. 10th of April is the crucial date, where proper bidders will be revealed and the then the auction of the company on the 17th.
The apes will make him pay over $50 dollars a share. Can see them ramping that up in the states
So they are out of the running. They are doing what VUE did. Go public to boost their company. Knowing they are out of the running, but using publicity to raise their share price.
The general meeting is after the auction process of the 17th and the sale date of the 10th. So they can present a sale offer to shareholders, as they need their approval to agree a sale.
So much useless speculation on here with no facts to back it up. Wait till the 10th and the courts to release the buy offers and whom makes it through to the auction process. All other legal changes to Cineworld are scheduled for May, if the company has not been bought out.
Ask yourself why would only Polaris and Jhango sell out. No one else closed their positions. Even though they bought in around £2 a share. Even Goldman Sachs are still holding their 2.75% stake.
This has still not had chapter 11 approved by the U.K. authorities and therefore what ever occurs, will need to go to a shareholder vote.
what hedge funds? Name any hedge funds in the ad group?
List all the ad hoc lenders. And their financial standing.
Credit Suisse notable one, look how that turned out. They are not a hedge fund nor is Investec, who borrowed heavily from the banks for the regal deal. Nor are the main landlord in America.
Enlighten us all.
What hed
April 10th Will she’d more light. More sealed dockets to go into the judge over coming weeks.
Bank crisis, will see many banks trying to close off some toxic lending. So Ad hoc group will come under pressure to pay off the money they borrowed from the banks to lend on to Cineworld.
This banking crisis has come at the right time for Mooky. Cinemedia going into chapter 11. AMC should have taken this route. Instead trying all kinds of things which will leave the shareholders almost nothing in return.
This is only the start. Banks will reduce lending to studios, particularly any projects for streaming. They will stipulate theatrical release for 120 days exclusivity.
The days of cheap money is over. Can see studios enter chapter 11 later in the year if there big movies fail to make over a billion.
Next week could see big falls in the stock markets around the world. Credit Suisse has been taken over by UBS. But this might not be enough to placate the markets.
Bonus for Cineworld we are at rock bottom. And traders have bigger fish to fry, so will steer clear from trading in Cineworld for a while.