Cinépolis owes greater than 27 billion pesos and seeks to restructure its debt

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Cinépolis owes more than 27 billion pesos and seeks to restructure its debt

The Mexican cinema chain will negotiate payment options with BBVA, HSBC, Santander and Bancomext, among others.

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January
7, 2021

3 min read

This article has been translated from our Spanish edition using AI technologies. Errors can occur due to this process.

The opinions expressed by the entrepreneur's contributors are their own.

One of the sectors hardest hit by the coronavirus pandemic in 2020 has been entertainment, especially cinemas. With more than $ 1,350 million in debt, Cinépólis is aiming for a bank restructuring agreement.

The country's largest cinema chain has more than a billion dollars in debt. This was reported to Bloomberg by sources close to the negotiation who requested anonymity as the details are private.

Cinépolis hired the financial advisory and asset management company Lazard to initiate discussions with creditor banks. These include BBVA, HSBC, Santander and the National Foreign Trade Bank (Bancomext).

For their part, the banks chose FTI Consulting as their advisor for the talks that began in early December.

This is the composition of Cinépolis' debt

The debt includes a $ 382 million (Mexican peso 7.5 billion) loan that expires in 2023. They also received a $ 200 million (MXN 4 billion) revolving loan due in 2024. They also received a term loan of MXN 9,750 million due in 2026.

In addition to these loans, there are commitments related to operations in India, Brazil and the Middle East. In total, the talks cover debts of USD 1.35 billion (approx. MXN 27 billion) with at least 17 banks, said one of the informants.

Alejandro Ramírez's company, founded in Morelia, Michoacán, has 862 complexes in 17 countries including the United States, Spain, India and Brazil. Only in Mexico City and the state of Mexico, which glow red from December 19 to January 10, does the company maintain 111 closed complexes.

The start of vaccine use in several countries, including Mexico, is making banks more poised to help companies like Cinépolis survive, Bloomberg explains.