Cineworld in agreement to delay payments to disgruntled Regal shareholders

The debt-laden cinema operator confirmed the move on Friday as it seeks to maximise available cash.

Cineworld is seeking to maximise available cash (Mike Egerton/PA) (PA Wire)

Cineworld has announced an agreement to delay final payments to frustrated former shareholders of its US cinema chain Regal.

The debt-laden cinema operator confirmed the move on Friday as it seeks to maximise available cash.

In September, the London-listed business said it would pay 170 million US dollars to disgruntled Regal shareholders who were frustrated with the price it purchased the US business.

The acquisition of Regal transformed Cineworld into the world’s second largest cinema operator.

Cineworld, which took on significant debt as part of the £2.4 billion takeover, said it has received a three-month extension to pay the remaining 79.3 million dollars of its agreement to Regal shareholders in instalments by June 30.

The acquisition of Regal transformed Cineworld into the world’s second largest cinema operator (PA) (PA Archive)

The cinema operator is separately embroiled in a legal dispute over its botched move to buy Canadian chain Cineplex.

Cineworld has appealed against a court ruling in December that stated the UK-listed chain must pay out 1.23 billion Canadian dollars (£720 million).

Cineworld attempted a takeover of the Canadian chain prior to the pandemic but pulled out once the sector’s future was plunged into doubt due to the impact of Covid-19.

The initial court ruling saw Cineworld shares plunge nearly 30% at points, but no cash has been paid out whilst both sides await the next step of the court process.

The latest announcement comes as movie-watchers return to cinemas in strong numbers following the relaxation of restrictions in many regions.