Regal Cinemas obtains financial bailout
The owner of Regal Cinemas has marked a lifeline to help the financially struggling cinema chain stay afloat.
Cineworld Group has secured a $ 450 million loan from lenders as coronavirus cases rise and theaters across the country remain closed. Other lenders have provided increased flexibility on the company’s revolving loan and senior debt, adding more than $ 750 million in cash to the company, the Wall Street Journal reported.
The deal comes just a week after it was announced that the entertainment company was seeking investors or a bailout deal to stay in business. Shares of the company rose 20% in London on Monday to £ 55.30, or around $ 74.
The company said first-half 2020 revenue fell 67% to $ 712 million. He has $ 4 billion in lease obligations and $ 4 billion in total debt. Last month, it temporarily closed its more than 500 U.S. theaters, which reopened in August.
In the short term, many films are released directly to streaming services, skipping traditional cinemas altogether. But with more Americans on the couch, the demand for manufacturing space To jumped. In June, Blackstone was in talks with Hudson Pacific Properties to develop a production space in Los Angeles, a valued case to $ 1.4 billion.
[WSJ] -Keith Larsen