British Land Company PLC (LSE:BLND), the FTSE 250 property giant, might vote against a restructuring of cinema owner Cineworld's British operations, according to a report today.
Cineworld wants revised rent deals for more than fifty of its outlets according to Sky, a proposal that British Land and several other lenders have baulked at.
British Land is said to own four Cineworld sites, three of which would be affected by the plan, Sky reported.
Land Securities and Legal & General are also said to be two of the largest Cineworld landlords, the report added, but their voting intentions are not clear.
According to Sky, the documents sent to creditors indicated that 33 ‘class b’ sites "require a reduction of rent to ERV [Estimated Rental Value] Rent in order to place the sites on a viable long-term footing".
A further 16 Class C1 and C2 leases require reductions to either turnover rent or zero rent to save them, said the document.
Around 38 of Cineworld's cinemas are not affected by the restructuring plan.
Currently, the UK arm is being supported by cash injections from the US parent with a hearing on the restructuring plan scheduled for later this month.
Cineworld said in a statement: "We anticipate that six cinemas will close as part of our Restructuring Plan.
"With the support of our landlords, the plan will enable us to deliver a cost base which supports a sustainable long-term business serving audiences across the remainder of our estate."
The company has more than 100 sites in Britain, including the Picturehouse chain.