The US arm of Cineworld, Regal Cinemas which back in 2020 pulled out of an agreed deal to take over the Canadian theatre giant Cineplex, which resulted in a court case pay-out in the billions, has a potential buyer. In a dramatic turn of events and a certain sense of irony, Cineplex has approached the lenders of the bankrupt battling chain’s owner Cineworld about a potential merger.
Cineplex smells blood in the air it seems and as Regal continues to shutter sites and battle high debt payments Cineplex has offered an exchange of stock and debt in order to take over their American rival.
Cineworld owes $1.23 billion!
Cineworld currently owes Cineplex over C$1.23 billion (£772m) as a result of their court battle, and a US bankruptcy court judge earlier this week denied a bid from Cineplex to gain any relief until Cineworld’s next hearing in October. This offer could be a way for Cineplex to receive their settlement, and Cineworld to offload a debt-ridden arm whilst, protecting a vast majority of sites and roles in the company.
However, according to The Wall Street Journal, this isn’t the first time this year this was discussed, previously it was discussed as a means to end the court battle. Now, with the recent bankruptcy hearings have only pushed Cineplex into a stronger position to negotiate. It would certainly be an unexpected turn of events, but in the current climate who else is able to take on the chain, or has the financial backing to do so successfully?
What do you make of the news? Would this be a good deal for Cineplex and Regal? Let us know in the comments below, we’d love to hear from you!
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