Cineworld shares soar as it secures $110m cash boost for July reopening
Shares in Cineworld jumped almost 25 per cent this morning after the chain said it had secured $110m (£90m) from lenders and hoped to reopen cinemas by July.
The UK cinema operator said it had secured the cash through an increase in its revolving credit facility.
It has also been granted approval to apply for a $45m loan through the government’s CLBILS programme and expects to access $25m through the US government’s CARES act.
Cineworld said it expected the additional cash to support the business even if cinemas remain closed until the end of the year.
But the company said it expected government restrictions related to cinemas to be lifted in all of its territories by July.
“Subject to this and confirmation of the schedule for film releases, Cineworld anticipates the reopening of all of its cinemas in July,” the firm said in a statement.
Cineworld said it had put safety measures in place to protect employees and customers when its venues reopen.
Under the government’s lockdown exit plan, UK cinemas may be able to reopen their doors from 4 July, though this date is subject to change.
But any reopening would likely be contingent on strict safety measures to ensure social distancing, including staggered screening times and enhanced cleaning.
Cineworld said its slate of releases following reopening includes the highly anticipated Christopher Nolan film Tenet and the live action remake of Disney favourite Mulan.