Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.
No studios are not being built by and for streaming companies. Do you have any idea the rental on studio space.
Only the biggest streaming shows can afford studio space.
Most studio space is already allocated for films due to soot over here for the next five years.
Most streaming shows are shot on location.
If you see the number of new studios being built in the UK by the studios and also the slate of movies to shoot over here for cinema release this year along. You will know cinema is far from dead.
Studios are continuing spending the money as if everything is all ok. They tried to destroy cinemas. But now need them more than ever.
April the 10th were legally binding offers need to be submitted will be the only true test of the state of play.
This week will see more drops in banking and finance stocks. Lenders to Cineworld will be caught up in this and see their share prices drop further.
Cineworld share price will bounce between 2.25p and 3.5p this week.
No one is posting on here about Credit Suisse being bailed out by the Swiss government. CS are a second lien lender of Cineworld. Or looking at the financial instability of the other 19 ad hoc group.
If Mooky did not pay out 450 million day before going into chapter 11, could have found another route to take. He purposely took this into chapter 11. Only him and his lawyers will know why.
But the World has changed a lot since September. Even the studios are slowly changing back towards cinema.
The key date is 10th April to see which companies remain in the bidding process. Then out of these, which go through to the auction seven days later.
Till then no point posting or checking this board. As will not offer up anything useful.
A company is an entity in law and not an asset. So will need share holder approval.
Also if wanted to sell ROW they had bids and could have asked for them to be binding.
This is just another delaying tactic by Cineworld. They say one thing and do another.
Their problem is the judge is on to them and put in place an auction process. Sealed dockets are bids for the whole company who are now bypassing Mooky and Cineworld. Wait till April for bids and the. Auction. This is where the real action is. Everything else is just a smokescreen.
Problem is ROW like all cinemas is not an asset. All cinemas are a business in their own right. Cineworld has set up a complex spiderweb of companies for tax purposes and to make it harder for them to have been bought out. All will have complex arrangements in showing films, as well as obtaining food and beverage for the cinemas through other companies in the Cineworld company.
You would need to buy the whole business outright, not to be stung by the deals each cinema is under.
Row will not bring any decent amount to pay off the debt. Revenue for Row is not a patch on Regal or Cineworld UK.
The true value is in the other parts.
Today is a result of concerns with credit Suisse. Whom are one of the second lien lenders in Cineworld. They want their money and not shares in Cineworld.
Mooky says one thing and does another. If he wanted to carry out debt for equity. He would not need an extension.
He is merely abusing chapter 11 to keep lenders off his back.
The judge will need to act and force through the sales process.
I expect he will either dismiss the extension or adjourn judgement on it till after the auction process in the 17th of April.
Mooky has never cared for shareholders as he feels this is his family business. Board members have failed share holders by bringing him into line. New buyers may have kept Mooky in charge. But going by the debacle of the last sale process. Feel they will move him on quickly now.
Mooky previously mentioned he wanted an extension and selling assets and the judge two days later released his own press release denying this. Mooky then made sure no acceptable offers were made by leading the sale process. The judge then set new sale end dat and crucially an auction process seven days after this. So going by what has come from the judge, he will deny any extension. His previous press release showed his frustration and did not want this to drag on. Mooky always wanted this to drag on.
Yes. If more sealed dockets go in. Then this would indicate companies are directly submitting bids to the judge, as they have lost faith in Cineworld’s conduct of the sale. Will see if this happens ver the next couple of weeks.
Vue had fewer lenders, debts of only £521 million and 221 sites.
Cineworld has around 20 in the Ad Hoc group. 6 billion debts and 751 sites. A much different prospective than Vue
To whittle down to two or three, they will need to buy out the rest in full. One of the first lien lenders is the main landlord. Are they going to buyout the company in full. They rely on rent from Cineworld as well as debts owed. Investec borrowed from HSBC and Barclays. They have to pay back the loans in full in 2025. Will they look to be bought out. There is zero agreements amongst the ad hoc group. Also the judge can deny them D4E equity if he feels there are better ways for the company. They have no comeback on this. Hence why the auction in April is before any debt for equity plan is discussed.
D4E is not till May. After Cineworld sale goes through. The Ad hoc lenders need to agree unanimously to this. Something which has not happened so far and with around 20 of them. Unlikely to get any complete agreements.
The Ad Hoc cleansing court session was adjourned. So more likely Cineworld to be sold now than D4E
The company has said a lot of things. But no action has taken place on them.
Judge actions not words. Until something concrete is done. Everything is still possible in this one.
The lenders are in a weakened position in chapter 11. The judge can deny them their proposal with no right of appeal. Not that the Ad hoc lenders are unified in their goals. Which also makes their positions harder. They cannot pursue their own goals. They all need to be on the same page.
That is why, no matter how hard it is, this company will be sold off in whole.
So many Ad hoc lenders and also legal hurdles in this. Maximum number of shares issued already. Need to placate laws in the U.K.
no Ad Hoc Cleansing court date seems to have gone ahead. Closed docket could have anything in it.
Lots of speculation going on. Wait till 10th April and then auction 17th. A better picture will emerge after this.
Legally there are plenty of minefields for all concerned.
Will need to buy the whole company. This is not getting broken up. Wait till the auction process starts.
No docket as this is outside the Courts jurisdiction. They have directly applied to relevant bodies in Canada and UK. No response from either so far.
Hence why no cinemas have been submitted to close to the courts. This was done shortly after declaring chapter 11.
Also why Goldman Sachs still hold their 2.75% their lawyers are all over the legal stuff like this.
The UK authorities. Cineworld is a UK registered company.
The elephant in the room which the judge is ignoring for now and also pushing for a sale. Is that the UK and Canada have not approved chapter 11. Cineworld applied for them to approve this. They are yet to respond. Both cannot approve this, as this will open the floodgates for other businesses to use this path to try and negotiate with their lenders.
So unless this is sold, with shareholder approval. This will end up in the courts for years to come .
Cineplex cannot afford to buy Cineworld. Wait till next round of bidding. Hopefully the judge takes a more proactive role and all bids are binding. Last round was a farce orchestrated by Mooky.
As for asset sales. Mooky has tried to call the sale of companies as assets. But until he tries to actually put this to the court and then get blocked. Nothing is really happening.
Nothing now will till April the 10th
Dude you know nothing. Paramount need both mission impossible films to take a billion dollars each at the box office. The one out this year has had so many additional shooting. That they have spent the budget of two films.
Disney intend to shoot two Star Wars movies. As well as another avengers movie. Fox has the Avatar films. Warner bros is looking at shooting everything from another Harry Potter film, new DC films and Lord of the rings films. All these are $200 million + budgets. The studios know they need tent pole films and not cheap stuff to kick out. They have also stated they are reducing output to streaming platforms, in order to cut losses.