28th May 2020 10:08
(Alliance News) - Cineworld Group PLC on Thursday said its lenders have agreed to waive the leverage covenant for the June testing date, as it announced plans to reopen cinemas in July.
The FTSE 250-listed movie house chain said its lenders also agreed to increase the leverage covenant for the December test to 9.0 times net debt to earnings before interest, tax, depreciation and amortisation.
Cineworld added that it has agreed the terms of USD110 million of additional liquidity through an increase in its revolving credit facility. It has also secured credit committee approval to apply for an additional USD45 million through the UK Coronavirus Large Business Interruption Loan Scheme and expects shortly to start a process to access USD25 million through the US government CARES Act.
"Cineworld expects that this additional liquidity, to the extent required, will provide it with sufficient headroom to support the group even in the unlikely event cinemas remain closed until the end of the year," the company said.
Aiming for that to not happen, Cineworld on Thursday unveiled plans to reopen all its cinemas in July, in anticipation of the lifting of government-enforced restrictions everywhere it operates. It added that it has put plans in place to ensure the safety of customers and employees.
All of Cineworld's 787 cinemas across 10 countries were closed as a result of Covid-19.
Cineworld stock was trading 23% higher at 95.36 pence each on Thursday morning in London.
By Ife Taiwo; [email protected]
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