RE: EUROPE RESEARCH ROUND-UP-MORGAN STANLEY TRYING THEIR LUCK AGAIN8 Jan 2021 12:32
8th January 2021- The article mentioned how Cineworld has resolved its finances and raised the needed equity
Cinépolis seeks to restructure more than 1,000 mdd in debt after pandemic
Cinépolis, the nation's largest movie theater chain, is looking to restructure more than $1 billion in credits, people familiar with the talks said. The global film theater giant hired Lazard to start talks with entities such as BBVA, HSBC, Banco Santander and the Mexican government's development bank, Bancomext. The talks began earlier last month and banks chose FTI Consulting as their advisor, the sources said, they asked not to be identified because the details are private. Cinepolis and HSBC representatives refused to comment, while those of Lazard, FTI and the other banks did not respond immediately to requests for comment.
Some of the debt includes a $7.5 billion ($382 million) installment credit due in 2023, a $200 million revolving credit due in 2024, and a fixed-term loan of $9.75 billion due in 2026. Combined with obligations linked to operations in India, Brazil and the Middle East, the talks cover $1.35 billion in debt from at least 17 banks, one of the people said. The start of vaccine implementation has made bankers more willing to help survive the chain, people said. Cinépolis, whose luxury cinemas have wider spaces between rows and serve craft ****tails, has a better chance than some of its more leveraged peers that have already been restructured, one of the people said. Competitors have sought financing in different ways, as confinement measures around the world have taken viewers away from theaters and streaming services have been an attractive alternative. AMC Entertainment Holdings, the world's largest film network, is in talks to raise new capital backed by its European cinemas to help it avoid bankruptcy, while London-based Cineworld Group secured a bailout loan from existing creditors in November. Cinépolis, which has branches in the United States, Spain, India and Brazil, has borrowed over the years to finance the global expansion of its high-end cinemas that have been affected by the pandemic. In October, it had 862 cinemas in 17 countries, according to a presentation by the company.
https://www.entrepreneur.com/article/362945
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