Tag: Cineworld

AMC Entertainment Cancels Cineworld Acquisition Negotiations

Here's the latest AMC Entertainment News: AMC Cineworld acquisitions cancelled.
Here’s the latest AMC Entertainment News: AMC Cineworld acquisitions cancelled.

AMC’s CEO says talks have been halted with Cineworld lenders relating to the possibility of several acquisitions.

Adam Aron says all talks AMC Entertainment had about acquiring Cineworld/Regal movie theatres are now officially off the table.

“We are disciplined to use our cash or stock ONLY when we are convinced that doing so is in the best interests of AMC shareholders.”

According to the 8K filing, AMC Entertainment planned on using APEs (AMC Preferred Equity) as partial payment for the acquisitions.

Here’s the latest AMC Entertainment news.

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AMC Scraps Cineworld Acquisition Deal

Cineworld News | AMC Cineworld News today.
Cineworld News | AMC Cineworld News today.

On Wednesday, Adam Aron released a snippet of the company’s 8K-Filing stating the following:

“AMC participated in discussions with certain of the Lenders (the “Lenders”) of Cineworld regarding a potential strategic acquisition by AMC, through a consensual plan in Cineworld’s ongoing Chapter 11 cases, including following the announcement in the Cineworld Chapter 11 proceedings that the Cineworld debtors were exploring strategic alternatives.

The discussions focused on the acquisition of certain strategic theatre assets of Cineworld in the United States and Europe, which acquisition would be financed, in part, through the issuance by AMC of APEs and debt financing provided by the Lenders, and conditioned upon a liability management exercise with respect to certain indebtedness of AMC.”

“During the course of discussions, the Company did not provide any
confidential or non-public information, analyses, compilations, forecasts, studies or other documents to the Lenders.

A definitive agreement with the Lenders has not been reached regarding the terms of any proposal to be presented to the debtors in the Cineworld cases, and at this time negotiations are not continuing.

While AMC reserves the right to continue to explore the acquisition of value enhancing strategic assets, there can be no assurance that AMC will resume any discussions with the Lenders or, if it were to do so, that it would be able to agree with Lenders or any other party as to the terms of a mutually acceptable proposal.

The Company has provided this statement pursuant to the terms of non-disclosure agreements with certain of the Lenders.”

Shareholder Comments

Most shareholders are on board, but some are wondering why APE would be used as payment when it’s trading this low.

The CEO addressed the falling share price of APE earlier this week with many shareholders still resenting Adam Aron for issuing the equity without shareholder approval.

While many shareholders continue to criticize the CEO for not raising concerns on the heavy short selling of the company, many shareholders still stand closely by Adam Aron’s side.

What does the cancellation of the Cineworld/Regal acquisition mean for AMC Entertainment?

Simply put, the company is waiting for the right opportunities to present themselves.

If there’s one thing Adam Aron has proved it’s that he’s a master at raising cash out of thin air and is precise about where he puts it.

In the past year, cash has been used to upgrade the company’s projectors with state-of-the-art laser technology, invest in their first-ever online merchandising store, all while paying down their debt.

What do you think is next for AMC Entertainment as we enter the new year.

Leave your thoughts below.

Cineworld Stock Trades Above Movie Industry Leader AMC

Stock Market News: Cineworld News, AMC News + more.
Stock Market News: Cineworld News, AMC News + more.

Cineworld’s stock price jumped on Tuesday after it received approval to tap into a $1 billion fund after settling with its landlords.

A U.S. bankruptcy judge granted Cineworld Group, the parent company of Regal Cinemas, access to more than $1 billion in funds after the world’s second-largest cinema operator reached a settlement with its landlords and lenders about an hour ahead of a triggered interest accrual on the debt.

U.S. Bankruptcy Judge Marvin Isgur signed the order Monday afternoon that includes Cineworld borrowing an additional $150 million and making a $1 billion debt repayment.

The judge signed the order after landlords and junior creditors dropped their oppositions to the repayment of $1 billion debt once Cineworld, based outside London, agreed to pay at least $20 million in rent accrued after Sept. 30.

The rents are determined in part by movie theater attendance with at least $5 million earmarked for a four-month period, according to an attorney representing Cineworld, per CoStar News.

Cineworld operates in three segments: the US; the UK and Ireland (UK&I) and the rest of the world (ROW).

The U.S. segment includes three cinema chain brands; Regal, United Artists and Edwards Theatres.


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CINE.L Stock Jumps 195%

Cineworld Group stock (CINE.L) jumped 195% on Tuesday to $7 from $2.75.

The stock surged as high as $9 per share.

Cineworld Stock Chart
Cineworld Stock Chart

The theatre stock had more than 412 million in trading volume on Tuesday, almost 7 times its average trading volume of 61 million.

It’s this type of continuous volume that initially triggered AMC Entertainment stock to surge to its all-time high of $72 per share.

Retail investors are perplexed by the fact that a struggling theatre chain company like Cineworld has a bigger share price than industry leader AMC Entertainment.

Afterall, it is AMC Entertainment that has amassed millions of followers and investors, beat earnings every quarter since 2021, and is innovating in NFTs, crypto, and a branded popcorn business.

But money speaks volumes, literally.

Volume is what caused AMC and GameStop to spike last year, and it’s what is going to cause the movie industry leader to spike again.

That is if retail investors remember to realize this.

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Sources: CoStar

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