Film group Cineworld received additional $ 200 million in loans from existing lenders as it hopes to weather the ongoing pandemic.
The loans mature in May 2024. The company has also agreed on amendments to covenants on some of its existing credit lines, including lowering minimum liquidity requirements and easing cash restrictions, which it says will help the group recover in the months and years to come.
Cineworld has significant operations in both the UK and the US that are struggling to get back to work after a devastating 15 months filled with lockdowns.
On August 12, the network will publish interim results for 2021.
“The additional liquidity announced today provides the Group with significant operational flexibility now that cinemas have opened around the world. We are monitoring the development of the virus and its potential impact on our business, but we are very excited about the potential for an unprecedented number of films in the second half of 2021 (mainly in the fourth quarter). We remain confident in the outlook for our business and look forward to welcoming our customers back to the best place to watch movies, ”said Cineworld CEO Muki Gradinger.