Cinépolis concludes an agreement to restructure its bank debts
Latin America’s largest cinema chain will receive an additional $ 200 million from four banks.
May 5, 2021
3 min read
This story originally appeared on Alto Nivel
Cinépolis reached an agreement with financial institutions rearrange more than $ 1,000 million in loans and be a creditor of 300 million directly, according to Bloomberg.
Among the institutions that have agreed to provide An additional $ 200 million support Cinépolis for the recovery of the Covid-19 pandemic are: BBVA , Santander , HSBC and Bank of America. It was after the family that runs the business gave a contribution of $ 100 million, said the spokespersons who asked not to be identified for providing data that is not public, according to Bloomberg .
That said, the contribution is split among most financial institutions that have over $ 1 billion in debt combined.
Cinépolis and HSBC declined to comment, other banks did not provide an immediate response, according to the outlet.
The reason Cinépolis, owned by the Ramírez family, requested a loan was to encourage a global expansion over the past decade of its lavish halls and large spaces to offer cocktail service and stretch your legs. Last year they had a total of 862 theaters in 17 countries.
When the pandemic arrived, cinemas stopped their operations, but with the vaccination campaign, the panorama is gradually improving in countries like Mexico , the United States and Spain , three key markets for Cinépolis, where theaters have reopened with limited capacity.
For example, Hollywood studios have decided to showcase their films on streaming platforms, so experts fear that box office sales may not return to pre-pandemic levels.
Among the debts of the company are a term loan of 7.5 billion pesos with a maturity in 2023, a loan of 200 million dollars with a maturity of 2024 and a guaranteed term loan of 9.750 million pesos with a deadline until 2026.
Also, according to the site, it joins the obligations concerning the operations in India , Brazil and the Middle East , on average $ 1.35 billion in debt at at least 17 banking institutions.