Vue International, Europe’s largest independent cinema operator, has confirmed it is undergoing its second debt restructure in 18 months, to help shore up its finances after the Hollywood strikes stalled the release pipeline.
As first reported by Sky News, UK-based Vue, its shareholders and lenders are in the process of organising the company’s second debt-for-equity swap in 18 months. Hundreds of millions of pounds of existing debt will be converted to equity, with roughly £50m of new capital being injected into the company.
Screen understands that there are no planned job cuts or site closures as part of Vue’s latest restructure.
As a result of the Hollywood strikes preventing talent from taking part in the publicity trail, the likes of Dune 2 and Challengers, starring Zendaya, pushed their releases from last year to 2024.
Vue’s founder and chief executive Tim Richards said at the British Screen Forum Conference held in November last year that 2024 was going to be “really, very, very tough” for exhibition and “worse, potentially even significantly worse, than this year [2023]” owing to a thinning out of tentpole titles in the 2024 release schedule. However, he was also optimistic that 2025 would be a “bumper” year.
Vue completed a restructuring a year ago, which saw £470m of debt wiped out and the company taken over by its lenders, led by US asset manager Barings and hedge fund Farallon Capital Management.
The cinema chain employs more than 8,000 people, with over 220 sites across Europe and Taiwan. It is currently looking for a chair to replace Stella David, who has moved to the position of interim chief executive of sports betting and gambling group Entain.
Richards, who is also the BFI’s outgoing chair, said of the debt restructure: “The unforeseen and unprecedented six months of strike action by Hollywood actors and writers in 2023 has had a short and medium-term impact on the industry, pushing back the release of anticipated number of movies and delaying the pipeline of new content.
“We are in discussions with our shareholders and lenders to ensure the business has the right capital structure to thrive and maximise exciting opportunities ahead once the pipeline of new content improves later this year and in 2025.”
No comments yet