Cineworld (CINE) will not pay out its 4.25¢ fourth quarter dividend as the cinema chain battles to row in its expenditure, after its 787 cinemas were closed due to the coronavirus outbreak. The company has also elected to suspend its upcoming 2020 quarterly dividends.
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Cineworld warned in March that it faced losing two- to three-months’ revenues under its worst-case scenario, which would lead to a breach of its lending covenants. Cineworld has now disclosed that it is in talks with its lenders over its revolving credit facility. As of 31 December, the company had drawn down $95m (£77m) from the $462.5m facility.
