Vue Cinemas Receives Lender Approval for $88 Million Recapitalization

European cinema chain Vue International has received approval from its lenders to receive a further £75m ($88m) to fund the company’s recapitalisation.

The consortium of lenders unanimously approved the move, which is expected to be completed later this year.

According to the cinema chain: “This will allow Vue to implement the new cash financing on a fully consensual basis with these lenders, so the settlement scheme ongoing in connection with the transaction has been discontinued.”

Vue expressly emphasized that landlords, suppliers and employees were not affected by the transaction.

“We are pleased to have our lenders’ 100% approval of the new money and are grateful for their support,” said Tim Richards, Founder and CEO of Vue International. “This represents a significant milestone in the execution of the broader recapitalization plan that provides the appropriate capital structure to maximize future market opportunities.”

As diversity As reported in July, Vue has signed an agreement for its senior lenders to take 100% ownership of the company. The new financiers are believed to be financial investors and lenders as opposed to banks or private equity.

The news comes at a difficult time for cinema chains, still reeling from the pandemic, followed by a global cost of living crisis. According to a Wall Street Journal report, Vue competitor Cineworld is expected to file for Chapter 11 in the US and bankruptcy in the UK

To boost attendance, 3,000 theaters across the US are participating in National Cinema Day this Saturday, September 3, selling tickets at a deeply discounted $3 apiece. Vue Cinemas Receives Lender Approval for $88 Million Recapitalization

Charles Jones

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