Cineworld secures more liquidity as it looks to reopen in 2021

Cineworld has announced the securing of additional liquidity alongside operational measures to enhance its profitability during these testing times.

The cinema chain announced that it has secured over $750m of extra liquidity to support the business including a new debt facility of $450m and issue of equity warrants.

It has also agreed bank covenant waivers until June 2020.

Commenting on the moves was Mooky Greidinger, CEO of Cineworld:

“The measures we are announcing today deliver over $750m of extra liquidity to support our business. Over the long term, the operational improvements we have put in place since the start of the pandemic will further enhance Cineworld’s profitability and resilience. The Group continues to monitor developments in the relevant markets in which we operate and our entire team is focused on managing our cost base. We look forward to resuming our operations and welcoming movie fans around the world back to the big screen for an exciting and full slate of films in 2021.”

Under scenarios planned by Cineworld, it notes the best case scenario reassumes a reopening of cinemas by May 2021 – should there be a delay beyond this, it still expects to have sufficient liquidity for additional months but may need support to deploy the liquidity from lenders.

The share price of CINE is currently trading at 46p.

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