Cineworld “Evaluating Strategic Options” As Admissions Dip Below Expectations, Soft Slate Ahead

deadline.com:

Cineworld, the globe’s second largest exhibitor, today provided an update on its current trading, liquidity position and capital structure.

The company, which also owns Regal in the U.S., said it is in “active discussions with various stakeholders and is evaluating various strategic options to both obtain additional liquidity and potentially restructure its balance sheet through a comprehensive deleveraging transaction.”Should it move to deleverage, any transaction will likely result in significant dilution of existing equity interests in Cineworld.

However, the group’s business operations are anticipated to remain unaffected and it expects to continue to meet its ongoing business counter-party obligations; while seeing no disruption to welcoming guests to its cinemas.Exhibition has been one of the hardest hit sectors of the industry as Covid forced closures of cinemas across an agonizingly volatile and lengthy period for bosses, workers and audiences.

Cineworld is not alone in assessing its future. Vue International is being restructured and AMC has been maneuvering to lessen survival risk.Overall, box office has seen a great return with a robust summer — led by Top Gun: Maverick — but we’re currently in an easing phase as fallout from Covid continues to impact release dates; a bottleneck at VFX houses limiting big-ticket movies is not helping.Said Cineworld, “Despite a gradual recovery of demand since re-opening in April 2021, recent admission levels have been below expectations.