REG - Cineworld Group plc - Update on trading, liquidity and capital structure

CineworldAnnouncement

17/08/2022 07:00

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RNS Number : 2448W  Cineworld Group plc  17 August 2022

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

17 August 2022

 

Cineworld Group plc ("Cineworld" or the "Group")

 

Update regarding current trading, liquidity position and capital structure

 

Cineworld is providing an update today on its current trading, liquidity
position and capital structure and the ongoing impact of the COVID-19 pandemic
on the Group. Despite a gradual recovery of demand since re-opening in April
2021, recent admission levels have been below expectations. These lower levels
of admissions are due to a limited film slate that is anticipated to continue
until November 2022 and are expected to negatively impact trading and the
Group's liquidity position in the near term.

 

Consequently, the Group has been taking proactive steps to ensure it has the
balance sheet strength and flexibility to adapt to market conditions. This
includes significant previously disclosed operational and financial
initiatives to manage costs and enhance liquidity. The Group believes these
steps are required to optimize its ability to maximize enterprise value as
part of the recovery in the cinema industry.

 

In connection with these initiatives, the Group remains in active discussions
with various stakeholders and is evaluating various strategic options to both
obtain additional liquidity and potentially restructure its balance sheet
through a comprehensive deleveraging transaction. Any deleveraging transaction
will likely result in very significant dilution of existing equity interests
in Cineworld.

 

The Group's business operations are expected to remain unaffected by these
efforts and Cineworld expects to continue to meet its ongoing business
counterparty obligations. Cineworld continues to welcome guests to its cinemas
across its global markets as normal, without disruption.

 

A further announcement will be made if and when appropriate.

 

The person responsible for arranging the release of this announcement is Scott
Brooker, Company Secretary.

 

Contacts:

 

 Cineworld Group plc:
 Israel Greidinger
 Nisan Cohen
 Manuela Van Dessel
 +44 (0)20 8987 5000
 investors@cineworld.co.uk (mailto:investors@cineworld.co.uk)

 FGS Global:
 James Leviton
 James Thompson
 Ed Treadwell
 +44 (0)20 7251 3801
 cineworld-lon@fgsglobal.com (mailto:cineworld-lon@fgsglobal.com)

 

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