Cineworld Group PLC (LSE:CINE) told investors it has begun talks with the formerly dissenting shareholders of Regal Entertainment with the aim of rescheduling of payments agreed previously in a settlement deal.
The cinema operator, in a statement, said it aims to maximise its available liquidity.
As it enters the talks it has also obtained waivers covering any events of default arising from non-payment under an unsecured facility agreement from various other creditors – including holders of Cineworld’s convertible bond due 2025 and other lenders.
Cineworld added that it is hopeful that a satisfactory agreement can be reached with the former Regal shareholders within the period afforded by the waivers.
In September 2021, Cineworld agreed a US$170mln settlement with certain shareholders of Regal who were unhappy with the takeover price paid by Cineworld in 2017.
The company is going back to those shareholders to talk timings as Cineworld works to alleviate financial pressures in the wake of a separate dispute tied to M&A.
A Canadian judge in December ruled against the company, ordering it pay damages for cancelling a US$1.65bn acquisition of rival Cineplex (TSX:CGX) in mid-2020 during the onset of the pandemic.
Last week the Cineplex (TSX:CGX) dispute was reignited as Cineworld made an appeal and Cineplex responded in turn lodged its cross-appeal.
The legal fight comes as Cineworld is lumbered with more than US$8bn of debt.
Regal Cinemas is Cineworld’s US operation comprising 527 theatres across the country (for a total of 6,989 screens). It represents the largest element of the overall business as under the Cineworld and other brands it operates 127 sites in the UK and 113 sites in Eastern Europe and Israel.