Regal-Owner Cineworld Expected to Reopen Cinemas in July
Cineworld, which owns Regal in the U.S., expects to reopen its cinemas in July. According to The Hollywood Reporter, Cineworld also received a waiver from its lenders on a debt covenant amid the coronavirus pandemic. Cineworld also raised additional liquidity, which would allow it to make it through the end of the year.
The firm said that Lenders "agreed to waive the leverage covenant in respect of its credit facility for the June 2020 testing date and has increased its leverage covenant to 9.0x net debt to EBITDA for the December 2020 testing date."
Cineworld said it "has secured credit committee approval to apply for an additional $45 million through [a] loan scheme in the U.K. and expects shortly to commence a process to access $25 million through the U.S. government CARES Act."
"Cineworld expects that this additional liquidity, to the extent required, will provide it with sufficient headroom to support the group even in the unlikely event cinemas remain closed until the end of the year," said the company.
Cineworld believes that government restrictions for cinemas will be lifted in each of its territories by July and "anticipates the reopening of all of its cinemas in July." Cineworld has also stated that it "has put in place procedures to ensure a safe and enjoyable cinema experience for its employees and customers."
Read the original article on The Hollywood Reporter.