Cineworld cancels Cineplex acquisition to lenders’ benefit

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By Owen Sanderson
15 Jun 2020

Cineworld has withdrawn from its proposed acquisition of Canada’s Cineplex, which had been funded by a $1.9bn term loan syndicated in February. With lenders to the transaction sitting on a paper loss of around 30 points, the collapse of the agreement will prove a boon, but break fees, swap costs and litigation could chip away at the chain’s stretched cash resources.

Cineworld said last Friday it “has become aware of certain breaches by Cineplex of the arrangement agreement relating to the Acquisition… In addition, a material adverse effect has occurred with respect to Cineplex. As a consequence of these matters and Cineplex's unwillingness to cure the breaches, Cineworld has ...

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