Cineworld secures more funds and says cinemas set to reopen in July
Cineworld on Thursday said it has secured new funding from its lenders and is hoping to reopen all of its sites in July.
The under-pressure firm, which had a $3.5 billion net debt pile as at December 31, saw its entire estate of 787 cinemas in 10 countries have to close due to the coronavirus crisis and lockdowns.
It today secured some financial breathing space. The group said it has secured a waiver on loan covenant and it has agreed $110 million (£89.7 million) of extra liquidity through an increase in its revolving credit facility.
On top of that it has secured credit committee approval to apply for an additional $45 million through the Coronavirus Large Business Interruption Loan Scheme in the UK.
Cineworld said it expects that, coupled with other funding, means there is “sufficient headroom to support the group even in the unlikely event cinemas remain closed until the end of the year”.
The company added that it currently expects that government restrictions related to cinemas will be lifted in each of its territories by July.
Subject to that and confirmation of the schedule for film releases, Cineworld anticipates the reopening of all of its branches in July.
The chain added that it has put in place procedures to ensure safe conditions for staff and customers.
