Member Info for WolfofWarks

Poor - do alarm bells not ring in your head that two years have passed, the company has failed to recover despite extra finance , rent cuts, deferrals, etc, and it is now down to its last $4m.

Despite the increase in revenue its financal position has not improved, in fact it has run out of cash pretty much altogether, hence the bankruptcy proceedings.

Poor - the secured lenders - the ones offering up the facility will be the main decision makers on a) whether the D4E is successful or b) be first in line in the event of liquidation when it comes to distributing assets.

They haven't offered the money up out of the kindness of their hearts, it's a power play to take control of the process. There are all sorts of limits on what Cine can and can't do with the money and it's all outlined in the dockets attached to the Kroll site.

Google Chapter 11 DIP finance - this kind of thing happens all of the time, this is just more profile because it's a British company. We are not seeing some completely unprecedented situation play out.

Hi Ian - The DIP finance has been put up by the existing lenders. The company has to instigate a D4E, not the lenders.

You don't really know what HSBC are going to do lets be honest.

For gods sake poor it's not a huge cash injection .... it's being provided by the existing lenders with the intention of providing minimal cash flow to keep the lights on for ten months with the balance refinancing ROW creditors and a tranche of the existing debt. The judge didn't award it to them the DIP lenders coffered it up before the first hearing. The judge has only delayed the refinance part for a few months.

It's going them first dibs on the carcass - you have to understand this mate.

They've had two years of negotiations with lenders and landlords. The next round of talks are along the lines of 'how much of our company do you want to call off the dogs'.

Basically the DIP lenders.

Ian - this is the first time a D4E has been proposed by the company. It's a measure of last resort once all options have been removed from the table.

You continually misunderstand what a D4E is, HSBC are more than versed in dealing with corporate restructures and customers in substantial debts. They have whole departments dedicated to dealing with them. They would have already provided for this in their accounts so for them it's simply a matter of how much they can recover based on the security in place. A good analogy of this is imagine them repossessing your house. They will look to recover the most amount of money with the least amount of effort required - so basically an auction and take the hit on the difference.

It's the hedge funds, investment bank type companies that will have an interest in controlling the company post D4E.

Hi Jotom - I think this may be the other way round. If sanctions are removed then they'll rejoin crest and start trading electronically again I would have thought.

"The paper is more saleable I suppose if and when the stock is released from restriction/relisted somewhere else or in an as yet unknown situation."

I'd be flabbergasted if a business with units in the hundreds hasn't fixed their energy contracts quite far ahead.

The company is unlikely to be bought out because the transfer of the capital of the sanctioned company is unlikely to be approved by the government. Same as it cannot be re-listed in Dubai. The holding company is effectively frozen.

Do you know for a fact what you have claimed in your post to be true?

Ian - the post D4E CINE will be worth substantially more. The question is how much of it current shareholders will own or if any of it at all after the dilution.

“But if the creditors had/ have CW by the gonads and were demanding D4E and CW had no other choice but to accept.
Then the judges actions have thrown them a lifeline to seek alternatives.”

Jeff - there are no other alternatives. It’s the end of the road. The whole C11 process has the objective of pushing the D4E through, hence why the existing lending have put up the DIP finance. The judge was just playing for time to allow a wider remit of creditors to become involved in the process.

Infinity - I was referring to the parri pass comment. I don't know anything about the broker you dug up.

My advice, be careful what you are posting up as you are in danger of misleading people, I'm assuming this is with the best of intentions.

Atb

FTH - The FT were suggesting that the 20% holding had been borrowed against so I think it's probably a bank or a hedge fund that is carrying the can for the 20%.

https://www.ft.com/content/d73682bf-a7fc-446e-a2e3-a503fdf56bd0

No, the judge simply deferred the immediate payment of $1bn to clear down one of the tranches of debt.

This whole process is aimed at pushing the D4E though, if not for that the company would already be insolvent.

it's really important that this is understood.

I forget the smiley face in my post :)

It was meant to be tongue in cheek.

Hi Jeff - Looks at the first sentence of the C11 RNS. The whole proceedings have the objective of facilitating the D4E.

"Cineworld Commences Chapter 11 Cases with approximately $1.94 billion in Debtor-in-Possession Financing Commitments to Facilitate a Significant De-Leveraging Transaction and Position Company for Long-Term Growth"

You’ve changed your tune poor.

I thought CINE was going to be saved by Xmas.

Ian - have you looked at the cash projection?

The $784bn keeps the lights on.

Couchman - I think that’s exactly what has happened here today.

Hi Jeff - The current facility is provided by the very lenders who stand to benefit most from the D2E swap. It's not fresh capital in that sense - some of it has already been used to pay off ROW lenders, some of it will plug the gap in the next 10 months trading and the remainder $1bn they want to use to pay off the tranches of debt - which the judge has deferred for a few months.