Re:Regal and Cineworld reportedly closing all theaters in US...
by smnrchrds on Sunday October 04, 2020 @09:21AM
(#24678842)
Cineworld was in the process of acquiring Cineplex, the largest theatre chain in Canada, when the pandemic happened. They want to walk away from the contract and Cineplex in suing them. IIRC, the contract specifically says pandemics are not a valid reason for termination, so this should be interesting to watch.
https://www.cbc.ca/news/business/cineworld-takeover-cineplex...
Re:Regal and Cineworld reportedly closing all theaters in US...
by claydavisss on Sunday October 04, 2020 @09:28AM
(#24678878)
At worst, Cineworld pays a penalty for breach of contract, but that will be another debt collected in bankruptcy.
Even in a pre-coronavirus parallel universe, it was a move that looked hugely risky for a company carrying a mountain of debt after its £2.7bn purchase of Regal Cinemas in the US just a year earlier.
Greidinger, it is fair to say, has not been shy about using leverage to expand. The takeover of Regal left it with debts of £2.3bn and £2.8bn of lease commitments. Yet here he was proposing to take on another £1.7bn of loans so it could gatecrash the Canadian market.