UK cinema chain operator Cineworld on Tuesday said it had begun talks with former shareholders of its US Regal Entertainment division over a potential rescheduling of its payment obligations.
The company in September said it would pay $170m to investors who were angry with the price they received when the company took over the US chain in 2017.
To help discussions, Cineworld said it had obtained waivers of any events of default arising from non-payment under the unsecured facility agreement from “various other creditors”.
“These creditors include certain holders of Cineworld’s guaranteed convertible bond due 2025 as well as the lenders under certain of its existing debt facilities,” the company said.
“Cineworld has initiated discussions with the Regal Litigation Parties with the aim of maximising its available liquidity and is hopeful that a satisfactory agreement can be reached within the period afforded by the waivers.”
