(Reuters) – Cineworld said on Monday shareholders had approved a plan for the world’s second-largest cinema operator to suspend its borrowing limit temporarily, giving the company much-needed breathing room to get through the COVID-19 pandemic.
The company, whose debt pile stood at $8.32 billion at the end of 2020, said 98.67% of the votes cast at the general meeting held earlier in the day were in favour of the resolution.
The passing of the resolution allows the company to move ahead with an issue of 213 million pounds ($292.73 million) in convertible bonds, which it announced last month.
The approval comes at a critical time for Cineworld, as it has started reopening its theatres in the United States and is gearing up to welcome back moviegoers in the UK next month.
The industry saw huge losses last year, with the global health crisis shuttering theatres and disrupting film production in addition to accelerating a shift to online streaming platforms.
However, 2021 looks more promising, with “Godzilla vs. Kong” having made $69.5 million in the domestic box office so far. The James Bond movie “No Time to Die” and Marvel’s latest superhero film “Black Widow” are also set to debut in theatres this year.
($1 = 0.7276 pounds)
(Reporting by Muvija M and Indranil Sarkar in Bengaluru; Editing by Amy Caren Daniel)
