Dec 21 (Reuters) – Cinema chain AMC Leisure Holdings (AMC.N) stated on Wednesday it was now not in talks to amass some theaters owned by now bankrupt Cineworld Group (CINE.L) following preliminary discussions with some lenders.
AMC stated the sooner talks had been targeted on the acquisition of sure theater property of Cineworld in the US and Europe, which might be financed partly by means of issuance of its most popular inventory and debt financing supplied by the lenders.
AMC in August introduced its most popular share APE as a particular dividend for shareholders and a way to lift capital sooner or later. The corporate listed these shares in New York below the ticker ‘APE’.
Shares of AMC rose practically 2% in buying and selling earlier than the bell, whereas its most popular shares had been up greater than 3%. Cineworld shares fell 5%.
Throughout the discussions, AMC stated Cineworld didn’t present any confidential or personal info, analyses, compilations, forecasts, amongst different paperwork to the lenders.
AMC added {that a} definitive deal had not been reached associated to any proposal to the debtors within the Cineworld instances and there was no assurance that it will resume talks.
Cineworld didn’t instantly reply to a Reuters request for remark.
Cineworld, the world’s second-largest cinema chain operator, in October introduced a chapter settlement with its landlords and lenders, clearing the way in which for the corporate to borrow funds and make a $1 billion debt reimbursement. learn extra
The corporate had agreed to discover a sale of the enterprise and permit creditor enter on its marketing strategy as a part of its chapter settlement.
With the cinema business struggling to get better from the pandemic, Cineworld in September, forecasted admissions would stay under pre-pandemic ranges within the subsequent two years. learn extra
Reporting by Chavi Mehta and Tiyashi Datta in Bengaluru; Enhancing by Maju Samuel and Shailesh Kuber
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