Cineworld has requested a delay to payments it owes to former Regal shareholders, as the debt-laden cinema operator seeks to shore up it finances. Regal is facing a fine of close to a billion US dollars from the abandoned merger with Canada’s Cineplex.
As part of Cineworld’s acquisition of Regal it had to promise to pay USD $170 million to ‘disgruntled’ Regal shore owners, who were unhappy with the purchase price of the 2017 deal. Cineworld is said to have obtained a waiver for any default arising from non-payment of dues to the “disgruntled” creditors, which includes holders of Cineworld’s guaranteed convertible bond that come due 2025. Cineworld is hoping to come to terms with the bond holders during this period.
Cineworld has appealed a ruling by a Canadian court last December that it has to pay Cineplex CAD $1.23 billion (USD $969.80 million) for abandoning plans to acquire the Canadian cinema major. Cineworld is said to be exploring various options for raising finances, including listing its Regal arm in the United States. Cineworld has benefitted from the return of cinema goers with strong titles such as “No Time to Die” and “Spider-man: No Way Home,” but it remains mired in debt due to the prolonged COVID pandemic.