19th Nov 2020 07:33
(Alliance News) - Cineworld Group PLC is considering a company voluntary arrangement as part of talks with lenders, the Financial Times reported on Thursday.
https://www.ft.com/content/a49de133-5596-4161-bbe5-02483c74c812
The cinema chain, the FT said, looking to reduce its rent payments and to permanently close UK cinemas amid lockdown restrictions and a lack of blockbuster films.
Citing "three sources close to the negotiations" the FT said the insolvency process is aimed at cutting costs and is part of talks with lenders, as Cineworld seeks access to capital while waiting for the return of major movie releases in the spring.
This followed decisions by Hollywood studios to delay film releases, which Cineworld needed to bring in winter customers, and which prompted the movie house chain to close all of its UK and US cinemas in October.
Cineworld hired AlixPartners last month to conduct emergency talks with its lenders, as the company could breach loan covenants in December, the FT said. Cineworld also has engaged in individual negotiations with landlords as it seeks to cut rent for its sites, the newspaper said.
By Anna Farley; [email protected]
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