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Cineworld gets extension on payments to former Regal shareholders

Published 02/18/2022, 02:54 AM
Updated 02/18/2022, 02:55 AM
© Reuters. FILE PHOTO: A Cineworld cinema logo is pictured in Canary Wharf in London, Britain, March 11, 2020. REUTERS/Keith Weir

(Reuters) - Cineworld has reached an agreement to delay final payments to disgruntled former shareholders of its U.S. division Regal, the theatre chain said on Friday, as the debt-laden British company seeks to maximise available cash.

The London-listed firm said in September it would pay $170 million to shareholders disappointed with the $23 per share it offered when it bought Regal in 2017.

Cineworld, which took on a huge debt as part of the $3.6 billion Regal deal, said it received a three-month extension to pay the remaining $79.3 million in instalments by June 30.

© Reuters. FILE PHOTO: A Cineworld cinema logo is pictured in Canary Wharf in London, Britain, March 11, 2020. REUTERS/Keith Weir

The world's second-largest movie theatre operator is separately embroiled in a long-drawn dispute over a botched deal with Canada's Cineplex, which could result in damages of up to C$1.23 billion ($969.7 million).

($1 = 1.2685 Canadian dollars)

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