18th Feb 2022 08:43
(Alliance News) - Cineworld Group PLC said on Friday it has negotiated a new payment deadline with former dissenting shareholders of Regal Entertainment Group.
At the beginning of the month, the London-based cinema chain said it had reached out to Regal shareholders to reschedule its payment obligations relating to their earlier settlement.
In early 2018, Cineworld took over the US cinema business, and in May of last year, Cineworld received a court judgement regarding the price that Regal shareholders were paid. The judgement against Cineworld was around USD255 million.
Cineworld had agreed to a payment schedule with Regal in September, with USD170 million to be paid at that time, and a further USD92 million to be held in an escrow account, to give Cineworld increased liquidity. The escrow funds were originally due to be paid to Regal by the end of March.
The two parties have now agreed to a new deadline of June 30 this year for the remaining USD79.3 million of escrow funds, plus interest and fees. The amount will be paid in instalments of unspecified amounts up until this deadline.
Cineworld had said at the beginning of this month that, to facilitate the discussions, it had obtained waivers or undertakings to waive from various other creditors, in the event of any non-payment of the settlement.
Cineworld is still awaiting the conclusion of its legal dispute with Cineplex over Cineworld's aborted acquisition of the Canadian cinema company in June of 2020. Damages payable to Cineplex of GBP720.3 million could be due if Cineworld's appeal in Canada is not successful. Cineplex had lodged a cross-appeal in January to ensure alternative compensation if the appeal was upheld.
Cineworld's share price was down 1.4% to 39.10 pence each in London on Friday morning.
By Elizabeth Winter; [email protected]
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