Cineplex gets covenant suspension under credit facility

By Wendy Van Sickle

Columbus, Ohio, June 29 – Cineplex Inc. entered into an amendment agreement with its credit facility lenders on Monday that provides immediate financial covenant suspension in light of the Covid-19 pandemic and its effects on the company's businesses, according to a news release.

The covenant relief can be extended to the second and third quarters of 2020 upon some conditions, including a minimum C$250 million new financing, a portion of the proceeds of which would be used to make some mandatory permanent repayments of the existing debt.

At June 29, a total of C$664 million was outstanding under the company’s credit facilities.

Toronto-based Cineplex is a motion picture exhibitor.

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