British cinema giant Cineworld announced on Friday that it has reached an agreement to pay $170 million to the dissenting shareholders of Regal Entertainment Group.
Cineworld released a statement on Friday, saying that its payment to the dissenting investors of Regal Entertainment has been decided due to their dissatisfaction with the price they received when the London-based cinema operator inked a definitive agreement to acquire the American movie theatre chain in December 2017.
According to the British company, it will pay $170 million to the dissenting shareholders and “$92 million will be placed into an escrow account to be available to Cineworld as additional liquidity under [a]certain circumstance.”
“The funds in the escrow account will [be] paid to the dissenting shareholders no later than March 31, 2022,” it added.
Because of the coronavirus pandemic that has shut cinemas for long periods of time, Cineworld has been grappling to confront its debt load amounting to $8.44 billion, a figure that is already about eight times the company’s market value.
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