“Regal movie theater owner Cineworld expects to reopen in July”
May 28, 2020 | 11:08am
A Regal Cinemas remains closed during the coronavirus pandemic in NYC.
The movie-theater giant said late Wednesday it anticipates that government restrictions related to cinemas will be lifted in each of its territories in the coming months and “anticipates the reopening of all of its cinemas in July.”
The London-based company — which like rival cinemas, has remained closed since coronavirus lockdowns hit the nation in mid-March when it dimmed all 787 screens in 10 countries — added in a statement that it “has put in place procedures to ensure a safe and enjoyable cinema experience for its employees and customers.”
The theater expects to open its doors with the new Chris Nolan movie “Tenet” and with “Mulan.”
Despite Cineworld’s rosy outlook, the company is still dealing with the economic fallout of the pandemic. Like AMC and other theaters, it has struggled financially, cutting and furloughing jobs and slashing costs. In March, Cineworld signaled that if it couldn’t renegotiate new terms with lenders, it may breach its debt covenants.
Blockbusters like Vin Diesel’s “Fast & Furious 9,” the new James Bond flick “No Time to Die” and Disney’s Mulan” have delayed their box office debuts as a result.
In order to make it through the end of the year, the London-based chain Cineworld said Thursday that that it received a waiver from its lenders on a debt covenant during the pandemic, and it also raised $110 million of additional liquidity. The covenant, which was due next month, is now due in December.
The company said it also got approval to apply for an additional $45 million through a UK loan, and it expects to receive $25 million through the Cares Act.
“Cineworld expects that this additional liquidity, to the extent required, will provide it with sufficient headroom to support the group even in the unlikely event cinemas remain closed until the end of the year,” the company said.
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