RE: What happened to...3 Nov 2022 12:32
Some asked what happened here...
Here is why CINE is re-rating (minus all fluff here, an baseless comments nor here nor there ):
See figures below for H12022 as per last RNS- much improved H1 2022 from 2021 (following cost purchase of Regal at $3b and Covid impact):
· Group revenue of $1,515.1m (H1 2021: $292.8m) reflects the uninterrupted operation of our cinemas across all territories.
· Both gross profit of $424.5m (H1 2021: $9.6m) and operating profit of $57.3m (H1 2021: operating loss of $208.9m) have been positively impacted by steadily increasing admission levels and strong Average Ticket Prices (ATP) and Spend Per Person (SPP).
· Group Adjusted EBITDA of $364.2m (H1 2021: loss of $21.1m) is due to operating profit of $57.3m excluding depreciation and amortisation of $270.6m, impairments of $66.3m and other exceptional and adjusting income totalling $30.0m (net).
Now a profitable business with good turn over post Covid restrictions.
They announced CH11 to restructure due to debt and creditors on their back, when it said it won’t / can't pay the rent etc.
Now, after reviews - it has said it will pay the rent (as has $300m cash as now operating much better than 2021) and settle with the creditors.
Cineworld announced a bankruptcy ''settlement'' with its landlords and lenders. This will allow the CINE to borrow an additional $150m and make a $1bn debt repayment - satisfy the creditors.
Previously, landlords and creditors had been opposed to the company’s billion dollar debt repayment plan. However, they dropped their opposition to the plan after Cineworld agreed to pay at least $20m in rent that will accrue after 30 September 2022. As they know they can pay rent and expenses.
Cineworld also agreed to look into a potential sale of the company, and allow creditor input on its business plan going forward (i.e. let creditors help it sell regal or whatever to get cash back as not equity!) They are working in the background now.
WIN/WIN - Good for creditors, CINE (and subsequently shareholders) - work together or one side loses. Hence an amazing deal as suggested by the Judge who was overseeing the Ch11 admission.
CINE is doing much better now than 2020/21 - profitable after all payments (rent/loans etc). Creditors know this and they want cash not equity or buildings and go with ch11 - hence agree to settle with additional loan support. Any bankers here?
Hope its all clear here. And no nonsense from anyone.
At least no halts at 9 now, as orders filled following gap down in August, and massive short positions under 10! That were in place.
(Debt is 1.5 times current rev 2022 - not bad - is long and short term and CINE can pay interest no problem , needs to be reduced a little hence the agreement to settlement out of ch11 with creditors part of the overall plan for reduction)
IMHO
(All of the above is verified and verifiable - numbers are positive - as you can see and so can the creditors
Sign In
Follow the stocks
