Dead duck26 Aug 2022 15:35
Cineworld was “run on a wing and a prayer” and will leave shareholders with nothing if it files for bankruptcy in the US, a short seller of the firm said today.
Barry Norris, chief of London-based Argonaut Capital which has reportedly shorted Cineworld for four years, said the firm’s pursuit of debt-funded deals had left it with a “completely unsustainable” capital structure.
Cineworld is teetering on the edge of bankruptcy after racking up huge debts in its acquisition of US Chain Regal, which saw it saddled with $4.84bn in net debt, and it also faces nearly $1bn in damages to Canada’s Cineplex after it walked away from a takeover bid.