Regal Owner Cineworld Posts $3 Billion Loss; Warns ‘Material Uncertainty’ Remains

Labor News, Industry News

Reprinted from The Hollywood Reporter by Georg Szalai on March 27, 2021.

Exhibition giant and Regal owner Cineworld Group on Thursday reported lower 2020 financials, including its first-ever full-year loss, due to the coronavirus pandemic, which left cinemas in many parts of the world closed for large parts of the year.

The UK-based company also said it has secured binding commitments for $213 million in additional cash via a bond to boost its financial flexibility “in the event of continued disruption as a result of COVID-19.” The funding and an expected $200 million US CARES Act tax refund “will provide the group with a liquidity runway to year-end in the event that cinemas remain closed,” it said, but it also warned of continued challenges and questions marks caused by the pandemic.

A year ago, Cineworld, the second-largest cinema chain in the world behind AMC Theatres, drew up possible downside scenarios for the coronavirus, including on that included “a risk of breaching the group’s financial covenants, unless a waiver agreement is reached with the required majority of lenders.” This could “cast significant doubt about the group’s ability to continue as a going concern,” a phrase meaning it could go out of business. …

THR 3/27

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About Jeffrey Burman 857 Articles
Jeff Burman served on the Guild’s Board of Directors from 1992 to 2019. He is now retired. He can be reached at jeffrey.s.burman.57@gmail.com.

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