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@shazabo agreed. Plus, the dissenting shareholders have already waived the event of default back in February when the box office was not performing very well.

@AllKap, from CINE’s RNS on the 15th December 2021:

“The Ontario Superior Court of Justice has now handed down its judgment. It granted Cineplex's claim, dismissed Cineworld's counter-claim and awarded Cineplex damages of C$1.23 billion for lost synergies to Cineplex and C$5.5 million for lost transaction costs. Cineworld disagrees with this judgment and will appeal the decision.”

I strongly believe in the company, I remain invested and I feel that we are going to be just fine :)

I think this has already been at the wrong place at the wrong time, we owe $1.2bn to Cineplex lol

Onwards we press, I am awaiting further funds and once obtained, I intend to put a bit more in CINE. TUI is also looking attractive, so I will conduct some research on them too.

Perhaps they are waiting to see what happens with Cineplex first. If Cineplex appeal fails they may do it as a means to help pay off the fine.

If Cineplex appeal is successful, they may wait until the business has vastly improved and then float in the US market for a higher value.

Hmmm @Hexam,

What else could you expect IR to say? If an investor contacted them about the RCF they wouldn’t say ‘oh yes, we paid it off don’t worry’. Furthermore, IR doesn’t actually SAY that the company is considering those two options, it just simply states that an RNS would be required if either of those two things happened, it may be that they are just listing to us the criteria that would warrant an RNS to be published since the sender of the email asked about why no RNS has been released (if I remember correctly).

@Hexam, good morning.

IR have made no comment on the paying down of the RCF? How do we know whether they have paid it or not?

@LTHcine, I think it is 90 days to seek a waiver?

@shazabo, I actually forgot about that bit. You are correct.

@TheMadStork, how do you know whether or not they have paid the waiver down to below 35%? Are you Nisan Cohen in disguise??

The response from IR is clear, we would only receive an RNS if the RCF is refinanced or a waiver is obtained, otherwise we will receive an update at the interim results. It could be the case that CINE have already reduced it to below 35%, hence no need for an RNS at this time.

The dissenting payment has already waived any event of default in case we can’t pay them.

@JohnnyCoder, as a matter of fact, yes it was.

During the lockdowns, streaming was taking over big time. Universal’s Head of Film was saying that once the lockdowns were over the theatrical window is finished, and that movies will be released in a dual format where they go to cinemas and streaming at the same time.

Lenders continued to support. Waivers came in and additional funding came in.

Then the lockdowns finished and they tried it, and the whole thing backfired against the streamers. Within months, Disney announced that the remainder of their films for 2021 would be theatrical release. Look at NFLX, worst performer in the S&P500 this year.

If you saw my local cinema a few weeks ago, you would have thought that there is no cost of living crisis ongoing, the place was busy. Cinema is in no way finished.

@shazabo, CINE needs to release a trading update as a matter of urgency if they want the fears to be eased.

I still think that they are waiting for the RCF to be dealt with, along with the dissenting payment and then a bumper RNS will be published.

Note the reply from IR ‘Any update on the RCF would come either at the interim results or via an RNS if the RCF is refinanced or a waiver is obtained (deadline to obtain a waiver is 90 days after test date).’

So the fact we got no RNS means that as of now, the RCF has not been refinanced and has not received a waiver. Couldn’t it still be the case that CINE may have managed to reduce it as needed?

Cinema has a good, strong performance history during financial crises.

Holding. I slept well last night and I will sleep well again tonight.

Just out of interest, why are they actually cancelling the flights?

I don’t quite understand the part of insufficient staff. You have a plane and you have a certain number of crew needed to get that plane in the sky. That doesn’t change no matter how many people are booked on the flight. Once the flight is full, it is full. The airline May overbook slightly, but how does that warrant the cancellation of so many flights like that?

Might be a basic reason that I am missing.

Good morning all,

Fantastic posts from the usual likes of @RS, @Hexam and many other LTHs.

Topic of the day for derampers today appears to be debt, many insightful posts this morning have put that issue to rest.

Yes, investors know about the debt. However, I remind you that Mooky himself has said on multiple occasions that the debt is not out of control.

https://deadline.com/2022/03/cineworld-mooky-greidinger-intervie-ticket-pricing-debt-cineplex-1234981324/amp/

The very first question relates to debt, and Mooky replies by saying that once we return to ‘normal levels’, we can reduce the debt. From the horse’s mouth directly: ‘in April we are confident that we’ll get close to 2019 numbers and in the following months this should start reducing the debt and this is the direction. As long as we had closed or cinemas that opened with limited lineups, it was of course difficult to reduce the debt.’

So there is your answer. In June we are certain of profitability. May was also fairly decent from memory.

All in my opinion.

Simple as that. You can send news articles, you can talk about debt debt debt, fine fine fine, Cineplex Cineplex Cineplex etc, but I just won’t sell.

No point when I’m already down nearly 70%, it is all or nothing at this point. Once again, Mooky is not selling, institutional investors with vast quantities of stock are not selling. Don’t tell me ‘better to leave with something than nothing’ because that certainly isn’t the mindset of these larger investors.

To each their own, but still sticking around.

@LondonMarket, understandable.

The article you saw, likely from Deadline, was a mistake I think. Forum Film is not connected with Cineworld is anyway except by the CEO to my understanding.

With respect to the results, I agree that the next results should be a nice show hopefully. We still have some fantastic movies ahead of us, I would not be surprised if H2 2022 is breakeven in my opinion.

@Tegop, I was about to write exactly what you just wrote there.

The website censors the name of the news website itself, and all the information they put in that article could be easily taken and twisted from here.

Spot on there Tegop.

They are indeed @shazabo

@LondonMarket, good afternoon.

The fine in question has been issued to Forum Film, which is owned by Israel Theatres Group, NOT cineworld. The only connection between CINE and Forum Film is the CEO. To my understanding, CINE is in no way liable for the fine, it is only Mooky.

Secondly, we all know that CINE is not the most financially sound company, but it is your call to make as to whether you’d like to invest or not. The current share price reflects that risk, and in my view if you’re willing to wait a few years and if all works out well for CINE, then you could be looking at easy 5-8x of your investment.

I have decided to take that risk, as have others here. I believe that the company’s relationship with it’s lenders will allow it to successfully navigate the rough waters we are in right now, and I’m optimistic. It is worth remembering that whilst everywhere was shut, and streaming was dominating, lenders still kept this company going. And now, they are very close to seeing it pay off, because we have already seen streaming suffering a lot (look at NFLX experiencing negative subscriber growth).

CINE brings in about $4bn in a normal year (considering 2019), so a US$930m (CAN$1.2bn) is not out of reach. There are also several other paths the company can take in the event that the appeal is unsuccessful.

As some have said here before, Mooky isn’t selling, large institutional investors are not selling, so why should I?

Thank you very much Hexam :)

So if I understand correctly, if CINE could not reduce to 35% on the 30th, then they have 90 days to get a waiver? So if the lenders say no during that time period (very unlikely imo), then CINE is instantly finished?

Furthermore, what the heck is going on with the dissenting payment? I’m quite certain that telling shareholders you’re in ongoing discussions with them is very essential info. Does this mean that CINE has not paid off the dissenting shareholders as of yet?