Cineworld backers to invest £35m if rescue plan is successful - report
Cineworld's US-based parent will reportedly inject £35m into modernising its British cinema estate if a rescue plan being put to creditors is successful.
According to Sky News, Cineworld's backers have agreed to put up the money for the capital investment plan in a bid to catch up with better-performing rivals.
The proposed funding is contained in a document circulated to Cineworld creditors as they prepare to vote next month on a restructuring which could lead to the closure of dozens of UK multiplexes.
"The US Group will provide a further £35m of additional investment to the UK Group, if the restructuring plans are sanctioned by the court, to be used for capital expenditures, including refurbishment and enhancement of viable cinemas," it said.
Details of the new funding come amid growing doubts about the ability of dissatisfied landlords to block the restructuring plan.
Earlier this month, Sky reported that British Land - which owns three Cineworld sites that would be adversely affected by the proposals - was contemplating voting against it.
A convening hearing is scheduled to take place next week, with a creditor vote set for late September.
A Cineworld spokesperson told Sky on Wednesday: "The restructuring plan will provide Cineworld in the UK with the opportunity to obtain further funding to meet its working capital needs, reduce its liabilities, and to benefit from a significant capital expenditure programme from the group."