Cineworld has agreed an increase of $110m (£90m) in its revolving credit facility and covenant waivers as it limbers up for post-pandemic recovery.
The world’s second largest cinema chain was forced to close all 787 cinemas due to the coronavirus pandemic.
It cut its dividend and executive pay and entered talks with lenders over its debt covenants, while also seeking rent reductions and holidays, in a bid to save the business.
Cineworld said its lenders have agreed to waive the covenant for its June testing date and increased this for its December testing date.
It will also apply for an additional $45m (£37m) through the Coronavirus Large Business Interruption Loan Scheme in the UK and will also seek $25m (£20m) through the US government’s CARES Act.
The business said it expected this additional headroom to support it until the end of the year. However, it is anticipating government restrictions to be lifted in most countries by July.
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