The Canadian exhibitor Cineplex has raised CAN$117 million (US$90.6 million) in free cash just to help in repaying the debt that too by selling the Toronto headquarters. Then leasing it back and expanding the customer loyalty program. Cineplex has received relief from the lenders after the collapsation of box office revenues that too in between the pandemic outbreak of COVID. Apart from this, the Canadian exhibitor Cineplex has raised another CAN$60 million (US$46.5 million) through a separate agreement with the sponsor of Scotiabank just to expand a Scenes-branded customer loyalty program.
Cineplex says half of the proceeds there from both transactions will be there going to be used for paying all the existing credit facilities that too permanently. Furthermore, through a statement on Tuesday, the president and CEO of Cineplex said that we are very much confident in our response to COVID -19 but actions have already been taken for stabilizing the financial positions. In November, Cineplex said its creditors struck an agreement for extending the covenant relief by around six months which means by the second quarter of 2021.
Probing further, Cineplex is banking on the promise that the vaccine is going to be distributed by the mid of 2021 for a possible pandemic cure so that we can easily bring the customers back to the multiplex. With the plans of vaccine rollout getting successful and final an impressive movie slate for 2021 and pent-up demand from guests for social safe experiences. We are very much confident as well about what is there in the company ahead in 2021, Jacob said.