Cineworld eyeing potential CVA, may shut some cinemas

Regal Cinemas owner Cineworld eyes UK theater closures rescue deal

The world's second-largest cinema chain, which owns the 536-strong Regal chain in the U.S. and its 127 Cineworld and Picturehouse cinemas in the United Kingdom, is talking to its lenders and landlords, and could pursue a company voluntary arrangement (CVA), the Financial Times has reported.

Shares in the company slid lower on Thursday (November 19) morning after the Financial Times reported that the chain was mulling a Company Voluntary Arrangement (CVA) restructuring deal.

Cineworld did not immediately respond to Reuters' request for comment outside regular business hours. However, Variety understands that Cineworld is indeed considering the option, at least until Hollywood blockbusters begin returning to cinemas with some regularity, beginning with James Bond title "No Time to Die" over the Easter 2021 holiday.

Cineworld appointed advisers from restructuring specialists AlixPartners last month to engage in emergency talks with its lenders, as it expects to breach loan covenants in December.

In addition to exploring a CVA, Cineworld is in individual discussions with landlords over possible rent cuts.

Cineworld is embroiled in a court battle with landlord AEW UK that launched a legal challenge against the chain in August over unpaid rent.

The film theaters in the Cineworld chain, that additionally operates the Picturehouse cinemas, like all different cinemas in the U.Ok., have been shut between March and July because of the unfold of the coronavirus pandemic.

The Cineworld group operates in 10 nations with 9,500 screens throughout 787 websites, together with 546 in the USA, 128 in the U.Ok. and Eire, 102 in Europe and 11 in Israel.

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