The largest cinema chain in Latin America will receive an additional $ 200 million from four banks.
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This story originally appeared on Alto Nivel
Cinépolis reached an agreement with financial institutions to reorganize more than 1,000 million dollars in loans and be a creditor of 300 million directly, according to Bloomberg.
Among the institutions that agreed to provide an additional $ 200 million to support Cinépolis for the recovery from the Covid-19 pandemic are: BBVA , Santander , HSBC and Bank of America. This was after the family that leads the company gave a contribution of 100 million dollars, said the spokesmen who requested 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 more than $ 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 why Cinépolis, owned by the Ramírez family, had applied for a loan was to encourage a global expansion in the last decade of its opulent rooms and large spaces to provide cocktail service and stretch its legs. Just last year they had a total of 862 theaters in 17 countries.
When the pandemic arrived, cinemas halted their operations, but with the immunization campaign, the panorama is gradually improving in countries such as 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 present their films on streaming platforms, therefore, specialists are afraid that box office sales will not recover to pre-pandemic levels.
Among the company’s debts is a term loan of 7.5 billion pesos with term in 2023, a loan of 200 million dollars with term of 2024 and a secured term loan of 9.750 million pesos with term until 2026.
Also, according to the site, it joins the obligations regarding operations in India , Brazil and the Middle East , on average 1.35 billion dollars of debt in at least 17 banking institutions.