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Precisely FunInvestor, is that not the case?

To all the chronic derampers, including our good friend pawelbak, I have one simple question for you.

Why is it the case that we were at 124p in the middle of lockdown, and now we are at 69p?

Cineplex was still there, debt was still there, concerns about consumer confidence in the cinema was still there. All of the concerns you bring up on a daily basis were still there at the time and we were at 124p. Now, we are en route with Cineplex and doing well, Mooky has said our debt is manageable and we can also see that even in a bad case scenario we would probably be just fine, we have seen pent-up demand since our reopening and fantastic numbers of attendance. So how exactly does 69p/share make sense? What makes even less sense to me is the talk about going down to 50p, how does that work exactly?

I’m just wondering that’s all, let’s see if we can get a response without mention of TUI or RR…

You as well smalltrader, thanks for your kind comments!

Good evening smalltrader, thanks for your informative comments.

Indeed, I believe you are correct. It is highly likely that we see 80-90% I think, fingers crossed :)

JG, the non-farm data you’re referring to was released at 1:30pm UK time on Friday, hence the rather red day we had on the markets on Friday. I believe the market has already priced that in.

Thats a very good question AllKap, personally I just take an ICEE into a 4DX. However I saw a few coming in today with popcorn and nachos and I was wondering if that would get messy when the film actually started lol.

Just out of interest, can anyone who saw Bond in 4DX confirm if there were any water effects on your showing? Mine had none even though there were definitely times where I was expecting it?

Hello all, please ignore the negative commentary about the figures surrounding Bond.

Just came out of a Bond screening now and it was packed solid, I’ve never seen so many people in one screen even before COVID.

There will be a slight delay, many people are still flocking to the cinema to watch this. Many also buying concessions.

Good evening all, hope you’ve had a great Saturday.

Was just having another look through the earnings report for H1 2021 and seen something great with regards to the debt.

Despite the fact that we are heavily leveraged and in debt, I would like to remind you that cineworld have said that we should be just fine with operating at our current state for AT LEAST 12 months (June 30th 2022 at least), and that we won’t breach any covenants with regards to minimum liquidity or leveraging at all (that is the forecast). The only danger of breaching those covenants that they list is the severe but plausible downside scenario, which would be another lockdown or capacity restrictions/changes to film schedules.

So far so good, no lockdown in sight and the only film we’ve seen changed is Top Gun, likely due to the political environment at the time. That severe but plausible downside scenario forecasts admissions at 45% of 2019 levels for December through to February, and there is no way at all that we are currently at 45%.

And listen to this, even in that severe scenario, we would still have enough money to survive throughout the Going Concern period (that is until DECEMBER 2022). ‘Sufficient liquidity to continue operating would remain throughout the Going Concern period and there would be no breaches of the minimum liquidity covenant.’

Hope this helps to ease some of the fears. I must say I had a look at a Motley Fool post earlier in the day and the way they phrased it caused a bit of concern. So I decided to revisit the report and surely enough my fears are gone, I thought I’d share what I read from the report with the rest of us to boost confidence in our investments :)

Of course, the debt is still there, but at least it doesn’t look like it’s going to cause us any immediate problems and we are not hanging by a thread as many over at the Motley Fool and over here on this bb like to make it appear as sometimes.

Have a great Sunday all, off to see Bond in 4DX today with a friend as well :)

In response to FunInvestor- I do not have a legal background, however I do have common sense.

If you defer rent payments and payments to suppliers and distributors, it is indeed DEBT. Cineplex attempted to omit this from the entire debt figure, which is misleading and is also part of the reason why cineworld terminated.

How is Cineplex going to back themselves up? Our finances are quite frankly none of their business and it is irrelevant. Even if we had £1 in free cash it makes no difference due to the fact we had the money aside.

That’s my view on the matter.

Hello MasterTrading, imo rights issue is not an option. Very high ownership by Mooky and his brother, and we have also seen that lenders are quite open to borrowing to cineworld. They believe in our business model.

This was further reinforced by a statement made by Mooky during the court proceedings, he said at one point that the lenders were actually willing to give more than the amount required as per the RCF, but Mooky and his executives decided to not take the extra as it wasn’t required.

Let’s also face reality, Cineplex is not winning the $2.18bn, there is no chance in hell. When it came to our turn to be cross-examined the best they could do is talk about how we didn’t close the deal before the deadline and about how we sought additional financing despite the fact that the money needed to fund the acquisition was ringfenced in advance. Both of these things were not in violation of any law or any contract, so if that’s the best they could do then they best not be expecting the $2.18bn, it was a fever dream even before the proceedings started and its only looking less and less likely for them by the day.

Very interesting to hear, Cineplex CFO didn’t tell Nisan about a new loan they just paid to the bank, and they also didn’t tell Nisan about a new loan Cineplex was seeking.

This case is getting worse for Cineplex by the day…

Spot on smalltrader- I think it also rules out any possibility for a rights issue, as if the price got diluted it would be much harder for it to reach the 190p required for the bonuses to come in.

Nice to see a more professional lawyer doing the cross examination today as well!

JG I think it’s just a case of the financial markets being all over the place at the moment. Evergrande, debt ceiling is still only temporarily fixed, inflation, gas and energy prices etc

Also fantastic news that the Senate in the US have managed to pass a temporary solution of some sort for the debt ceiling. US futures in the green, that’s at least one problem out for now :)

Thanks for all the comments, glad it helped.

Got work tonight at 6:30 unfortunately, but hope to listen to the court case before that point at least, I will relay what important things I hear :)

Good morning Yousaf, the final court date is 22nd October, but it may take longer than that to get a verdict. Some have pointed out that it may get delivered in a written statement, hopefully by the end of the year I would assume.

Good morning to you also smalltrader and spot on- we should be rising right now because we have just gone through a very difficult part of the court proceedings for us now and we’ve prevailed imo. The cross-examination is supposed to reveal where we’ve gone wrong and the best the CP lawyer could do was shout about document dates and irrelevant finances lol, Mooky just looked at him whilst he lost it and drank Pepsi XD

Good morning onesharewonder, indeed we still believe Jangho is still invested. We’ve not seen any change in ownership from them.

and not a problem iParsnip, all the best :)