RE: Placing6 Oct 2020 16:41
Cineworld – which is now worth just £380 million following the sharp fall in its share price - has already had to raise over $360 million worth of additional liquidity this year, and it now has net debt of almost $8.2 billion at the end of June, equally split between bank loans and lease liabilities. That is a huge amount of debt and one that cannot be dealt with if no income is coming through the door.
"Cineworld previously said it had enough liquidity to survive into the middle of 2021, even if its cinemas had to remain closed for the rest of 2020. However, it conceded when it released its interim results that it was ‘assessing several sources of additional liquidity’ and that ‘all liquidity raising options are being considered.’"