Cineworld Share Discussion Threads

[jaknife] 16/5/2023 09:40

PWhite73,

"Wrong again. In Docket 1600 page 6 Cineworld has already announced PWC will be conducting an audited report to 31/12/2022 to facilitate the issuance of senior notes on behalf of Crown UK Holdco Limited. However this date is not to be confused with the official year end date that has now been extended to 30/06/2023 as advised on Companies House website."

If you think that this is correct then you should have no issue accepting my small wager.

I bet you a case of good white Burgundy that both (a) the Cineworld accounts for the 12 months ending 31 Dec 2022 AND (b) Cineworld's statutory accounts to 30 June 2023 are *NEVER* published."

Do I need to explain to you the difference between consolidated account of the group headed by Crown UK Holdco Limited versus consolidated accounts of the UK PLC?

JakNife

[pwhite73] 16/5/2023 09:34

JakNife - "I'll bet you a case of good white Burgundy that both (a) the accounts for the 12 months ending 31 Dec 2022 AND (b) the statutory accounts to 30 June 2023 are *NEVER* published."

Wrong again. In Docket 1600 page 6 Cineworld has already announced PWC will be conducting an audit report to 31/12/2022 to facilitate the issuance of senior notes on behalf of Crown UK Holdco Limited. However this date is not to be confused with the official year end date that has now been extended to 30/06/2023 as advised on Companies House website.

"Accountants’ Report on the Group: - In connection with item 1.5 of the Qualified Investor Bond Market Listing Rules of TISE, the Offering Memorandum will contain historical financial information on the Group covering the year ended 31December 2022 prepared on the basis of IFRS as issued by the International Accounting Standards Board (“IFRS”) (the “Group Financial Information Table”)."

[lthtrust] 16/5/2023 09:12

I remember watching the excellent video from bucephalus research regarding cineworld in February 2020.it was before the Cineplex deal. It was and still is on YouTube. It is one of the reasons that I only ever day traded here.

[pwhite73] 16/5/2023 07:52

BLAST and Cineworld join forces for BLAST.tv Paris Major Jonno Nicholson 15 May 2023.

"Esports tournament organiser and production company BLAST has announced a partnership with cinema chain Cineworld. As a result of the deal, the final of the BLAST.tv Paris Major will be shown in cinemas located across eight countries."

This is the future for cinema (a home to gaming tournaments) that the creditors of Cineworld are trying to steal. They will fail in the UK and European courts.

[pwhite73] 16/5/2023 07:43

JakNife - "Let me refine my wording: I'll bet you a case of good white Burgundy that both (a) the interim accounts to 31 Dec 2022 AND (b) the statutory accounts to 30 June 2023 are *NEVER* published."

Wrong again. The interim accounts have already been published see below:

RNS 30/09/2022 - "Interim Results for the period ended 30 June 2022".

The year end 31/12/2022 has been extended to 30/06/2022. How difficult is that to understand.

JakNife - "This isn’t a Ch11 clause, this is a Clause specific to the Cineworld Plan - it gives the Debtors the right to withdraw the Plan at any time"

Don't split hairs with me. A withdrawal of the current plan is technically a withdrawal from C11. I agree with your second point were Cineworld to withdraw from the current plan without an alternative satisfactory to the creditors then they would be at the mercy of the creditors. I was merely correcting your mistaken assumption that Cineworld could not withdraw from C11, it can.

[jaknife] 15/5/2023 23:40

PWhite73,

”JakNife - "I'll bet you a case of good white Burgundy that the statutory accounts to 31 Dec 2022 are *NEVER* published."

You are correct because there are no statutory accounts to 31 Dec 2022 as the year end has moved to 30 Jun 23."


Let me refine my wording: I'll bet you a case of good white Burgundy that both (a) the interim accounts to 31 Dec 2022 AND (b) the statutory accounts to 30 June 2023 are *NEVER* published.


"There's a clause in C11 that allows any party to terminate at any time.

Please see docket 1589 Page 85 - SECOND AMENDED JOINT CHAPTER 11 PLAN OF
REORGANIZATION OF CINEWORLD GROUP PLC AND ITS DEBTOR SUBSIDIARIES”


This isn’t a Ch11 clause, this is a Clause specific to the Cineworld Plan - it gives the Debtors the right to withdraw the Plan at any time (but not the creditors and hence it doesn’t permit “any party to terminate at any time”). If the Debtor were to exercise this clause then that would withdraw the Plan but it wouldn’t “terminateR21; the Ch11 process. If Cineworld were to withdraw the Plan then that would then leave the creditors free to propose their own alternative plan or, given that 99.2% agree on the current Plan, to simply propose the current Plan.

JakNife

[pwhite73] 15/5/2023 23:09

JakNife - "I'll bet you a case of good white Burgundy that the statutory accounts to 31 Dec 2022 are *NEVER* published."

You are correct because there are no statutory accounts to 31 Dec 2022 as the year end has moved to 30 Jun 23.

JakNife - "There's a clause in C11 that allows any party to terminate at any time."

"I've never heard of such a clause, to the contrary I think that you'll find that all the parties are bound to the Ch11 process now that it's started."

Please see docket 1589 Page 85 - SECOND AMENDED JOINT CHAPTER 11 PLAN OF
REORGANIZATION OF CINEWORLD GROUP PLC AND ITS DEBTOR SUBSIDIARIES

C. Revocation or Withdrawal of Plan.

To the extent permitted by the Restructuring Support Agreement and subject to any consent rights set forth therein, the Debtors reserve the right to revoke or withdraw the Plan prior to the Confirmation Date and to File subsequent plans of reorganization. If the Debtors revoke or withdraw the Plan, or if Confirmation or Consummation does not occur, then: (a) the Plan shall be null and void in all respects; (b) any settlement or compromise embodied in the Plan (including the fixing or limiting to an amount certain of any Claim or Interest or Class of Claims or Interests), assumption or rejection of Executory Contracts or Unexpired Leases effected under the Plan, and any document or agreement executed pursuant to the Plan, shall be deemed null and void; and (c) nothing contained in the Plan shall: (i) constitute a waiver or release of any Claims or Interests; (ii) prejudice in any manner the rights of such Debtor or any other Entity; or (iii) constitute an admission, acknowledgement, offer, or undertaking of any sort by such Debtor or any other Entity.

[jaknife] 15/5/2023 20:04

"This will give time for the audited year end results to 30/06/2023 to be published, then watch all hell break loose when the figures are released."

I'll bet you a case of good white Burgundy that the statutory accounts to 31 Dec 2022 are *NEVER* published.


"There's a clause in C11 that allows any party to terminate at any time."

I've never heard of such a clause, to the contrary I think that you'll find that all the parties are bound to the Ch11 process now that it's started.

But regardless, why would Cineworld want to terminate the process that (a) they started, and (b) is concluding with their plan? And why would the creditors back out now when 99.2% of them have now agreed to the Plan?


Docket 1,688 confirms the status conference will be on 5 June. I doubt that there will be anything new until that date.

[werethereisawill] 15/5/2023 18:26

PWhite73
Yes because Where there is a will there is a way !

[pwhite73] 15/5/2023 16:44

Docket 1690. C11 now extended to 03/10/2023. The Debtors (Cineworld) need more time. Told you all there's big trouble ahead in the UK courts. This will give time for the audited year end results to 30/06/2023 to be published, then watch all hell break loose when the figures are released. There's a clause in C11 that allows any party to terminate at any time.

[loglorry1] 15/5/2023 16:15

Not even Rocket and Gamora can save Cineworld.

[werethereisawill] 15/5/2023 15:29

Guardians of the Galaxy is doing extremely well 529 million !
While Super Mario Bros over 1.21 billion

[jaknife] 14/5/2023 21:56

PWhite73,

”The C11 proposals are already anticipating trouble in the UK courts this is why on 12/05/2023 only two days ago they had to confirm in docket 1686 PWC (PricewaterhouseCoopers) were conducting an audit to 31/12/2022. The audit started on 08/05/2023 and is due to end on 24/05/2023. You see under UK law and in fact under US bankruptcy law an independent valuation has to be conducted of the financial state of a company filing under C11. It appears an agreement has been reached between the debtors and creditors before an independent valuation of Cineworld has been made.”

I don’t know how you arrive at this conclusion. There’s nothing in the engagement letter to suggest that anyone is “anticipating trouble in the UK courts”, there’s no UK or US law about obtaining “an independent valuation” and the engagement letter references an “audit” and makes zero reference to “valuation”.

This engagement letter looks like a request for an audit, which will be provided to the various banks, so that they can confirm the position of the consolidated accounts of Crown UK Holdco Limited. Note that the banks don’t appear to give two figs about consolidated accounts for the UK plc, which would be consistent with an expectation that the banks expect to get complete control of Crown UK Holdco Limited without the baggage of the UK plc.


"Unfortunately even the audit from PWC will be of no use before the UK courts because Cineworld has moved its year end from 31/12/2022 to 30/06/22 clearly to reflect the improved trading conditions."

For what must now be the fourth of fifth time, Question 2 from the FAQ explains:

============================
2. But business is improving for Cineworld
This is not true and it’s easy to demonstrate. Cineworld has been providing monthly management accounts to the court since it entered Ch 11. The last ones are for the month of February:

A. Cineworld UK Debtor Group


B. Cineworld US Debtor Group


In both cases if you look at "page 16 of 22" then you can see that Cineworld is still massively loss-making and burning cash.

From:
============================


Finally, FWIW re the annual accounts, it's not been explained why Cineworld changed their year-end from 31 Dec to 30 June. However, one of the direct consequences of that change is that:

* whereas Cineworld's annual accounts for the year ending 31 Dec 2022 would have been due to be published on 30 April 2023 (four months after year-end)

* the "interim accounts" that are now due for the interim period of 12 months ending 31 Dec 2022 do not have to be filed until 30 June 2023 (six months after the end of the “interim period”).

*IF* Cineworld *hadn’t* changed their year-end, but then failed to publish the final accounts by 30 April 2023, then trading in the shares would have been suspended. Hence, one of the things that changing the year-end has achieved is a delay of two months before *ANY* statutory accounts have to be published.

Personally that has a “kicking the can down the road” feel to me rather than anything else.


”Believe me before the end of June like an obedient and well-trained horse JakNife will be eating lumps of sugar from my palms.”

I have diarised 30 June.

I prefer a good white burgundy to “sugar lumps”:



JakNife

[lthtrust] 14/5/2023 21:50

PWhite73:
1. Cineworld is not the largest Cinema Chain in the world. This is from their website. "Currently, Cineworld Group plc is the world's second-largest cinema chain, with over 9,000 screens across 751 sites in 10 countries. The Group's primary brands are Cineworld and Picturehouse in the United Kingdom and Ireland, Cinema City in Eastern and Central Europe, Yes Planet in Israel, and Regal Cinemas in the United States.".
2. You said that the directors and the creditors will "OWN ALL THE REVENUE from the following films". Perhaps you meant to say all of Cineworld's revenue from the following films. But you did not. here is your paragraph: "By throwing Cineworld under bus No C11 in September 2022 the directors and the creditors will own all the revenue from the following films over the next seven months. Cineworld is worth well in excess of the $4.5 billion written off and the DIP money. Cineworld only had a liquidity problem that's all.".
Cineworld's problem is that they have lost $Billions since 2019 and are now over indebted. The Shareholders Equity has been lost, as has a lot of the money that they have borrowed. Which is why it is likely that not all of Cineworld's creditors will be repaid in full.

[pwhite73] 14/5/2023 19:53

loglorry1 - "The monthly accounts lodged with the court"

No accounts have been lodged with the courts. Those are merely trading reports by Cineworld to support the creditor agreement. PWC is due to report the first audited accounts since C11 to 31/12/2022 but as I stated they are already of no use because the year end was moved to 30/06/2023.

[loglorry1] 14/5/2023 19:34

Extending accounting period because trading is going so well!!! That's a new one.

The monthly accounts lodged with the court show Cineworld is still loosing a fortune.

You are being a dullard PWhite.

[pwhite73] 14/5/2023 18:49

LTHTRUST

1. When Cineworld with 9,500 cinemas purchased Regal with 7,200 it became the largest cinema chain in the world.

2. I never said Cineworld received all the revenues from the movie releases. What I said was that the directors and creditors received all the revenues from Cineworld.

3. My analogy with owning property and how equity can be negative one day and positive the next was 100% spot on.

I have nothing but the utmost respect for JakNife but this one he has called wrong.

The C11 proposals are already anticipating trouble in the UK courts this is why on 12/05/2023 only two days ago they had to confirm in docket 1686 PWC (PricewaterhouseCoopers) were conducting an audit to 31/12/2022. The audit started on 08/05/2023 and is due to end on 24/05/2023. You see under UK law and in fact under US bankruptcy law an independent valuation has to be conducted of the financial state of a company filing under C11. It appears an agreement has been reached between the debtors and creditors before an independent valuation of Cineworld has been made.

Unfortunately even the audit from PWC will be of no use before the UK courts because Cineworld has moved its year end from 31/12/2022 to 30/06/22 clearly to reflect the improved trading conditions.



Believe me before the end of June like an obedient and well-trained horse JakNife will be eating lumps of sugar from my palms.

[lthtrust] 14/5/2023 16:36

pwhite73, your previous 2 posts are both wrong and nonsense, JakNife is correct. A couple of examples:
1. Cineworld is NOT the largest cinema chain in the world.
2. Cineworld does not receive all the revenues from the Movies, in fact it only gets a fairly small percentage. The Studios usually take over half, then there are ALL the other cinema chains and independent cinemas.
3. Your analogy with housing is ridiculous. Cineworld's business strategy was/is to lease their cinemas and not own them. This explains cineworld's lack of Tangible assets and $Billions of lease liabilities, which are of course in addition to their $Billions of debt.

[werethereisawill] 13/5/2023 14:00

A bit like the banks saying you pay no interest at all hmm but we charge you a fee !!!?

[williamcooper104] 13/5/2023 11:33

They aren't getting compensated for loss of shareholding Standard PE practise is to give senior management 5-15 of the equity They are getting it to incentivise them to minimise creditors ultimate losses

[pwhite73] 13/5/2023 09:16

Part 2

By throwing Cineworld under bus No C11 in September 2022 the directors and the creditors will own all the revenue from the following films over the next seven months. Cineworld is worth well in excess of the $4.5 billion written off and the DIP money. Cineworld only had a liquidity problem that's all.

The following films are due for release later this year.

Fast X [Cinemas] – May 19. The Little Mermaid [Cinemas] – May 26. Spider-Man: Across the Spider-Verse [Cinemas] – June 2 Transformers: Rise of the Beasts [Cinemas] – June 9 The Flash [Cinemas] – June 23 Asteroid City [Cinemas] – June 23 Indiana Jones and the Dial of Destiny [Cinemas] – June 30 Insidious: Fear the Dark [Cinemas] – July 7 Mission: Impossible - Dead Reckoning - Part One [Cinemas] – July 14 Oppenheimer [Cinemas] – July 21 Barbie [Cinemas] – July 21 Meg 2: The Trench [Cinemas] – August 4 Teenage Mutant Ninja Turtles: Mutant Mayhem [Cinemas] – August 4 Haunted Mansion [Cinemas] – August 11 Gran Turismo [Cinemas] – August 11 Blue Beetle [Cinemas] – August 18 Strays [Cinemas] – August 18 The Equalizer 3 [Cinemas] – September 1 The Nun 2 [Cinemas] – September 8 The Expendables 4 [Cinemas] – September 22 Next Goal Wins [Cinemas] – September 22 Cuckoo [Cinemas] – September 29 Kraven the Hunter [Cinemas] – October 6 The Exorcist [Cinemas] – October 13 Saw 10 [Cinemas] – October 27 Dune: Part Two [Cinemas] – November 3 The Marvels [Cinemas] – November 10 Chicken Run: Dawn of the Nugget [Cinemas] – November 10 The Hunger Games: The Ballad of Songbirds and Snakes [Cinemas] – November 17 Wish [Cinemas] – November 22 Wonka [Cinemas] – December 15 The Color Purple [Cinemas] – December 20 Aquaman and the Lost Kingdom [Cinemas] – December 25