By Samuel Indyk
Investing.com – Shareholders of cinema chain Cineworld have today overwhelmingly voted in favour to approve a temporary suspension of the company’s borrowing limit at its General Meeting.
The passing of the resolution will enable the issue of convertible bonds announced last month to proceed to settlement, increasing the company’s debt pile by an extra £155 million.
Pandemic Hit
Cineworld recently announced a pre-tax loss of £2.2bln as its 767 cinema locations have been forced to close due to the coronavirus pandemic.
The approval of the debt limit suspension comes as the company begins reopening cinemas in the US and the UK. The UK lockdown has meant cinemas have been closed since the beginning of the year and the company recently said it plans to reopen when the government allows on 17th May.
Over the Easter weekend, Godzilla vs Kong was also released in US cinemas which raked in a total of £23 million in its opening weekend, a record for a film released during the pandemic.
“The numbers prove that even with social distancing and capacity limits in place, cinemas can deliver a hugely enjoyable experience,” said UK Cinema Association chief executive Phil Clapp.
At 16:00BST, Cineworld shares were trading lower by 2.3% at 101.09p.