Cineworld Share Discussion Threads

[jaknife] 06/6/2023 18:20

Werethereisawill,

"I always thought ch11 was to help or prevent companies from going bust ?"

And that's exactly what's expected to happen here:

* The Cineworld business is expected to survive with no material cinema closures.

* A negotiated settlement will be arrived at with creditors that sees them write-off a significant chunk of their debt to make sure that New Cineworld won't be over-burdened with the excessive level of debt that was its downfall.

* Shareholders will lose their shares but at least they won't be forced to pay for any of Cineworld's debts, which total c. £2.60 per share!

JakNife

[werethereisawill] 06/6/2023 18:04

Superich
I shall remain standing !
============
I always thought ch11 was to help or prevent companies from going bust ?

[jaknife] 06/6/2023 17:04

Werethereisawill,

"Reading between the lines us HOLDERS could be frustrating cine management in their desired outcome ?"

I've no idea why you would think this? There's a Telegram group ( and they've done a good job of organising a letter writing campaign to the judge. One of them has also done a reasonable job of writing a challenge to the valuation that's being used. But at the end of the day none of what they've written stands up to scrutiny. For example, they have claimed to the judge that they represent 7% of shareholders but within the Telegram group have openly admitted that that's a lie.

The big issue still remains that they have to reconcile the valuation that they claim for CINE with the maximum price that bidders were prepared to pay. The valuation has to be greater than $6.76bn (the $2.26bn EV placed on Cineworld NewCo + the $4.5bn of debt that's being written off) in order for there to be a return for shareholders. However, I'm sure you recollect that the whole business was put up for sale and that the bids that came in were in a range that seemed to top out at about $2.25bn. So it's one thing to come up with a piece of paper and say XYZ is worth $10bn but if the maximum that anyone is prepared to pay to buy the business is $2.25bn then that suggests that the piece of paper is wrong.

Ultimately shareholders don't have a leg to stand on.

JakNife

[werethereisawill] 06/6/2023 15:43

Reading between the lines us HOLDERS could be frustrating cine management in their desired outcome ?

[williamcooper104] 06/6/2023 13:03

But lenders want to take it private so that potential value is gone What's 100 percent certain is that this goes to zero It's possible that some junior creditors kick of and that delays matters But the final ending is still the same - total wipe out So it you hold CINE sell now for at least something

[williamcooper104] 06/6/2023 13:01

It needs to go through the UK courts but given that it's insolvent (absent the DIP funding) and that's been proved by a marketing exercise, which trumps any valuation and that almost all the creditors are in agreement then it's almost certain that the UK courts will waive it thoughThe UK listed entity will post losing all of its assets then be effectively insolvent and will have to be wound up UK shareholders can't stop a company de listing The only value that equity could have gotten is if creditors had wanted to keep their equity listed and then they'd have ascribed a few million to the legacy equity

[werethereisawill] 06/6/2023 12:59

Thank you JakeNife always the gentleman!

[jaknife] 06/6/2023 12:58

tron343,

"What do you mean by this? If CINE goes private, then the old shareholders lose their equity.

Questions:

1. The CH11 case is only legally binding in the USA not UK ?"

The Ch11 Plan is effectively legally binding in the UK as well as the US, partly because the creditors and Cineworld have agreed to be bound by it and also because of the Cross-Border Insolvency Regulations 2006/1030, under which the UK recognises certain insolvency processes that are commenced elsewhere in the world

eg read:


"2. The US stock has been delisted and put on the over the counter market ?"

Perhaps this was done to cut costs? But it will not affect the ultimate outcome.


"3. The UK shares need 75% shareholder approval to de-list... does this mean
after CH11 the UK shares will trade a little longer?"

No. Cineworld do not intend to follow the de-listing procedure. It is expected that, once the Ch11 process completes, then the UK PLC will most likely end up in administration. At that point in time it would no longer be in compliance with stock exchange rules and its listing would automatically be suspended.


"4. Does the UK court provide any protection for shareholders?"

What sort of protection? Shareholders need to understand that their company has defaulted on its debts and is so heavily indebted that its having to agree to write off $4.5bn of those debts (an amount equivalent to about £2.60 per share). The "protection" that shareholders have is "limited liability" which is protecting you from the banks coming after you to make you pay the unpaid debts!!!


"Hoping for some kind of miracle here, so that shareholders get pennies on the pound returned?"

Why should shareholders get anything? As noted above your company has defaulted on its debts and is seeking relief from paying $4.5bn of them. In such circumstances why on earth should shareholders get anything?

JakNife

[tron343] 06/6/2023 12:47

What do you mean by this? If CINE goes private, then the old shareholders lose their equity.

Questions:

1. The CH11 case is only legally binding in the USA not UK ?

2. The US stock has been delisted and put on the over the counter market ?

3. The UK shares need 75% shareholder approval to de-list... does this mean
after CH11 the UK shares will trade a little longer?

4. Does the UK court provide any protection for shareholders?

Hoping for some kind of miracle here, so that shareholders get pennies on the pound returned?

[williamcooper104] 06/6/2023 10:46

You can only buy new cine if you hold old cine debt And it won't be listed

[jaknife] 06/6/2023 10:44

Werethereisawill,

"Will there be a time when dividends are announced on present cine or new co cine ?"

No dividends will ever be paid on Cineworld Group PLC ("present cine"). Dividends might be paid on "NewCo Cineworld" but it's too early to make a definitive statement on that matter.


"If new co cine starts soon what would the initial share price be ?"

There is no intention under the Plan for the shares of NewCo Cineworld to be listed so there will be no public share price.

JakNife

[werethereisawill] 06/6/2023 10:29

Will there be a time when dividends are announced on present cine or new co cine ?
If new co cine starts soon what would the initial share price be ?

[melegramforttongo] 06/6/2023 09:13

Watched little mermaid recently .
The screening was at least 10% full compared to the usual 0-0.5 % full and this was not peak period .
My popcorn purchase delighted the manager and the rest of the dozens of staff began to fist pump thinking their jobs are now safe.

Sell everything you have and pump it into CINE.
A 10k investment today could soon be worth TEN MILLION POUNDS

[williamcooper104] 05/6/2023 22:51

Good news for the company Not good news for legacy equity

[werethereisawill] 05/6/2023 21:30

Good news for a change

[werethereisawill] 05/6/2023 11:24

208.6 million for the first weekend for Spider man !!!

[werethereisawill] 02/6/2023 22:21

Yes I believe the hold was for the whole year of 2023 !?
==============
Spider-Man was very busy today

[lthtrust] 02/6/2023 17:15

And when did they do that ? Clearly it is historical information and the three analysts got it wrong! Cineworld's existing shareholder's WILL be wiped out after Cineworld's ongoing retructuring under chapter 11 bankruptcy protection. You have been warned what to expect time and time again by Cineworld in their recent RNS's.

[werethereisawill] 01/6/2023 23:05

Three consensus analysts suggest HOLD

[werethereisawill] 01/6/2023 15:27

The Noel Coward story is on tonight at the cinema !!
And Super Mario Bros has over taken Frozen with nearly 1.3 billion and still going strong !!

[cambridge130] 01/6/2023 09:26

Death, taxes, and Cineworld shares will be worthless LOL

[werethereisawill] 31/5/2023 11:10

The LittleMermaid is a classic !

[lthtrust] 30/5/2023 17:13

I prefer a good 4 to 6 episode TV series myself, there are so many out there at the moment, what with sky, amazon prime, netflix not forgetting the BBC and ITV. There are not many things in life that are certain; Death, Taxation and that Cineworld's shares will be worthless. It is as certain as the Amen in the church.

[werethereisawill] 30/5/2023 14:42

Cinema chains are the shop windows of high value products like Mars Cadbury rollover popcorn Pepsi Cola Baskrobins ice cream Nachos plus all the best sellers in Starbucks and not just the movie numbers !
Now Lth give yourself a break and go watch a good movie !