I believe these posts are merely used to setup the usual “How absurd! Mocky (deliberate misspell of name) was reckless with the finances. He doesn’t have enough money to pay for the pic n mix let alone $2bn”
The company is cash strapped because it faced a once in a lifetime lockdown that impacted operations across the group for a sustained period of time. No forward planning could have avoided that given the size of their operations.
These have all been bested about let’s see what Monday says. I’ll be buying more and demanding more clarity on RoW.
Move money from the impatient to the patient I mean.
RoW = Rest of World
Read this which valued it at £503m when it was acquired in 2014 by Cineworld Plc
https://en.globes.co.il/en/article-1000908660
Antlev, you’re a swing trader so please do us all a favour and pipe down with the proverbs which you are completely bast*rdising in the process. It was Buffet who said the market is an efficient tool for transferring money from the patient to the inpatient.
Many have invested years prior to covid and will have used ETFs, invested across a diverse portfolio etc.
When the company releases an RNS stating equity interests are going to be wiped out in the event of sale or D4E, you are not intelligent regurgitating that as we can all read it from the RNS.
Many want to know about the finer points regarding RoW which is not part of CH11 and how equity will be managed when the newcorp is established or creditors do go ahead and take a hair cut and cease the company operations in the U.K. and US.
Hi Mountainous, welcome back.
I believe you and HNS saw the whites of Mooky and Nisan’s eyes when you attended the AGM so you will know better than most that they are very conscious of the support of long term investors.
I keep banging the drum but RoW is what I am fixated on.
If this does not form part of the Chapter 11 restructured and will be moved to a newcorp, investors Inc institutional ones with convertible bonds, should be demanding that they receive equity when the assets move over.
This should include retail investors, too.
Let us see what the plan is and if it is a wipeout, I imagine there will be a legal challenge and class action suits gathering to represent retail investors too.
If the creditors wipe out investors, it will see Cineworld and their cinemas risk reputational damage too.
Let us see what Monday brings!
I believe Cineplex will appease their shareholders if they accept an out of court fee. Right now their stock price is beaten too and will only deteriorate further if they allow Cineworld to fold and absolve the claim in its entirety when the newcorp is spun up and resumes operations.
Time will tell.
No idea. I am only assuming based on the “Arrangement Agreement” found here:
https://www.cineworldplc.com/sites/cineworld-plc/files/cineplex-inc-acquisition/arrangement-agreement.pdf
This was not defined well enough to allow Cineworld to terminate the agreement during the pandemic.
We irrevocably and unconditionally undertake, represent and warrant to you that we shall pay to the Company (a) $41,520,000 in the event the Termination Event (as defined below) occurs prior to 11:59:59 p.m. (Toronto time) on February 2, 2020, and (b) £28,275,895 (payable in Canadian dollars based on the spot foreign exchange rate published by Bloomberg at 11:30:00 p.m. (Toronto Time) on the date of this letter agreement) in the event the Termination Event occurs after 11:59:59 p.m. (Toronto time) on February 2, 2020 (either, (a) or (b), as applicable, the “Shareholder Termination Fee”).
I imagine there will be legal firms specialising in recovery lining up to represent in a class action suite against newcorp Cine if Cine do not award shares in the newcorp and leave them high and dry, taking RoW all for themselves.
Sit tight for now and let this play out.
Cine posted “forward statements” which the RNS stated may not even take place. The big question is, will Cineplex roll the dice and stick for the absurd $700m USD synergies award or will then decide to accept the termination fee of $28m that Mooky and the Cine team should have engineered as a break clause?
Cine have played a good game here.
A complete waste of time taking your frustrations out on other posters. You may be annoyed Nk2022 and Wolf may have a more negative view of things but all your thread does is legitimise his FUD.
We need to wait for next week when the plan is revealed. Importantly we need to understand that if two options were being explored:
1. Re-org and D4E with U.K. and US operations/assets
2. Sale for entire Group
If 2 is well short, let 1 happen but shareholders need to demand RoW is preserved and equity is accounted for through the market cap and if this does indeed form part of newcorp, that shareholders are given shares in the newcorp when the assets are moved over.
You have to scoff at the attempts from the shorters or those wanting a lower entry than 2.3p (lol) with their faux outrage. We need that resident who likes to call Mooky, Mocky. What is his username again? Wouldn’t surprise me if is the same clown MIKODX.
As others have posted, net debt to EBITDA was 3.5x so whilst not under 3, was in line with industry standards. Also of the current $6bn debt which includes the DIP facility, $4bn of that, 66%ish was accumulated through the acquisition of Regal which generates 75% of their income to the group.
Covid was a once in a life time event and strangled operations too long and then the residual impact hurt film production which saw 2022 release much less movies than anticipated.
The streaming experiment has been trialled and day date is dead.
Now we have to see what value is left of RoW once the D4E is done with U.K. and US operations.
How much will shares be worth of the plc after?
More than 2.3p? If there is talk of surrendering RoW when it was not part of Chapter 11, there needs to be a class action against Cineworld newcorp!
In a food court and though to post here whilst I wait for my food.
I’m still here because whilst U.K. and US operations may not leave any equity interests for shareholders, I’m invested in the plc and that still has Rest of World and that is not being bought and is not subject to Chapter 11 reorganisation from my understanding.
I don’t see why if the bids received so far are all well short of the desired $6bn (cash and whatever other agreement to take on debt), why would Mooky and the BoD then surrender the RoW operations?
This is risk vs reward for all stakeholders involved, not just PIs.
CaChing, Sharabel, ProfitJock, Iloveushi etc etc are all monikers from the same boiler room, I suspect. Don't waste your time calling them out, they don't give two hoots about their credibility. You are wasting your time point scoring with them, their focus is swing trading.
Convertible bond*
You have answered your own question, Penta.
Cineplex are at the back of the queue, if the forward looking statements do materialise, shareholders get zilch, unsecured claimants like Cineplex the same.
Therefore it is in Cineplex's interest to get to the negotiating table and agree the money/out of court settlement now before Chapter 11 plan is baseline and agreed. A bird in the hand and all that, right?
This is speculative, I don't know the certainties but, I'm going to use the opportunity top-up and if this does go down, I would like to see Newcorp Cineworld offer shares to those who still hold onto shares of Cineworld plc.
Will the new BoD agree to this? I don't know but if they want to see a recovery of the SP, they need to consider this if they eventually go to list the company on the Nasdaq.
Penta, who is to say the settlement will be pay now in full.
Who is to say this settlement won't be a convertible loan with a maturity of 4 years?
Nothing is certain, Tegop.
These are forward looking statements based on prevailing conditions and forecasts.
Anything can happen, negative or positive so yes, there will be noise as the day traders have an opportunity to make 30-50% swing trading this.
This morning it dipped to 2.3p, then it recovered to 3.1p - 35% recovery.
You will have the day traders out posting back and forth and this is to be expected.
My advice to LTH is to simply sign-off this board instead of getting upset or emotional.
I am buying at dips as this is my personal choice.
I believe this is a firm message to Cineplex, accept something now or expect zero.
Good luck all and do not stress.
Glad someone else observed this. I loaded up at 2.3p this morning :D
There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions (including any potential sale by the Group) and the risks, uncertainties and costs related to the Chapter 11 cases, including, among others, the timing of any emergence from the Chapter 11 cases and the risk that any Plan may not be confirmed or implemented at all.
This was a message at Cineplex, you are on limited time. Accept the amount Cineworld are offering or expect nothing.
Else there will be nothing for their unsecured claim….
@Tegop don't take my word for it. It is here in black and white
https://cases.ra.kroll.com/cineworld/Home-DownloadPDF?id1=MjI3NzEyMw%3D%3D&id2=0
"Chapter 11 restructuring process involves entities that are engaged in Cineworld’s US, UK and Jersey businesses; businesses in all other territories remain unaffected"
UK's Cineworld buys Cinema City for £503m
https://en.globes.co.il/en/article-1000908660