09:38:23 EDT Fri 14 Aug 2020
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Cineplex Inc
Symbol CGX
Shares Issued 63,333,238
Close 2020-04-14 C$ 12.26
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Globe says bondholders wary of Cineplex takeover deal

2020-04-15 07:07 ET - In the News

The Globe and Mail reports in its Wednesday, April 15, edition that Cineworld Group's takeover deal for Cineplex has encountered another potential hurdle months after the two cinema chains agreed to a merger: Cineworld bondholders may be attempting to block the deal, according to a report. The Globe's David Berman writes that Britain's Telegraph reported that U.S. and Canadian bondholders who recently purchased Cineworld debt have hired Houlihan Lokey Inc., a Los Angeles-based mergers-and-acquisitions advisory firm, to explore alternatives to completing the planned takeover now that the value of theatre chains appears to be in free fall. The Telegraph also reported that Moshe Greidinger, Cineworld's chief executive officer, is examining ways to reduce the deal's price, after the COVID-19 pandemic hammered theatre share prices. The Globe says the two companies declined to comment. Disgruntled bond investors add to the uncertainty hanging over the friendly deal, which was announced in December, approved by shareholders at both companies in February and was expected to be completed in the first half of this year. The COVID-19 pandemic has hit theatre stocks particularly hard since the deal was struck.

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