RE: 1m buys2 Nov 2022 18:51
Here is why we are having big buys and pps re-rating up
See figures below - 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.
They announced BK 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 shareholders. Hence an amazing deal as suggested by the Judge who overseeing the Ch11.
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. Any bankers here?
Hope its all clear here. And no nonsense from anyone.
Back to 20-30p.
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.
IMHO
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