Movie theaters are struggling to stay afloat while closed indefinitely as a result of coronavirus. Recently, analysts said that bankruptcy is ‘likely’ for AMC Theatres. Now, Cinemark is selling $250 million in debt securities to continue operating.
Cinemark says the debt securities will be used for “general corporate purposes” with the notes guaranteed by company subsidiaries, according to a report from Deadline. “The Notes and the guarantees will be the company’s and the guarantors’ senior obligations secured by a first-priority lien on certain of the company’s leasehold interests in real property,” the company shared in the announcement.
Cinemark furloughed employees with most of its 350 locations around the country closed for the time being. Cinemark CEO Mark Zoradi, along with the board of directors, ae foregoing their salaries during the pandemic.
“We are taking prudent steps to withstand the economic impact of our temporary closures during this pandemic,” Zoradi said. “Our priority as we navigate this uncharted territory is to ensure that Cinemark will be able to open its theatres and employ our global team members when this pandemic subsides.”
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