The Globe and Mail reports in its Wednesday edition that Cineplex is seeking at least $250-million in new financing as it attempts to recover from pandemic-related shutdowns and from the breakdown of a $2.2-billion deal to sell the company.
The Globe's Susan Krashinsky Robertson writes that Cineplex is focused on opening the doors at its 164 theatres, as well as entertainment venues such as the Rec Room and Playdium, and convincing customers it is safe to come back.
Under a covenant-relief deal struck with its lenders on Monday, the company has until the end of August to secure a minimum of $250-million in new financing -- through borrowing, or asset sales, or both -- and to use $100-million of that to repay its line of credit.
In its earnings report Monday, Cineplex cautioned that if unsuccessful in securing that financing, its future prospects and its status as a "going concern" could be at risk.
Chief executive officer Ellis Jacob was supposed to be retired by now, having just completed the sale to Cineworld Group. Instead, Mr. Jacob says he is not going anywhere and is focused on overseeing Cineplex's recovery.
Cineplex is pursuing legal action over Cineworld's withdrawal from the deal in June.
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