Travelodge owner leads secret group behind Cineworld restructuring
![](https://www.cityam.com/wp-content/uploads/2020/11/Cineworld-Closes-All-UK-And-US-Cinemas-1278582621-scaled-e1725203218140.jpg?w=742)
Goldentree, the Wall Street hedge fund behind Travelodge, is leading a contentious overhaul of Cineworld that could leave UK ratepayers facing large losses.
Cineworld, which collapsed into administration last year with £4bn in debt, has since fallen under the control of a covert group of hedge funds.
This consortium is led by Goldentree and includes Dubai-based Sirius Capital and Mayfair fund Blantyre Capital, according to The Sunday Times. It has reportedly been negotiating severe rent cuts with Cineworld’s landlords as part of a radical restructuring plan.
Cineworld wants to close six of its 101 UK sites immediately, with more than a further 30 potentially in danger if the chain cannot secure rent cuts from landlords.
The restructuring, recently approved by a London judge, is proposing a drastic reduction in rental payments for Cineworld’s properties, which could impact nine sites owned by local councils.
Councils such as Barnsley, which invested in Cineworld’s multiplex at the Glass Works complex, are at risk of losing out from the deal that includes plans for “zero rent” agreements and substantial cuts to existing rents.
Goldentree is known for similar aggressive rent negotiations with Travelodge during the pandemic after the hotel chain missed quarterly rent payments.
Travelodge then demanded that its landlords reduce or delay rent payments, asking for an 80 per cent cut in 2020 and a 50 per cent cut in 2021. At that time, Goldentree was one of the three owners of Travelodge.
Goldentree, Cineworld and Sirius Capital did not immediately respond to a request for comment. Blantyre Capital declined to comment.