Cinemex Will Close Movie Theaters And Restructure Debt

Grupo Cinemex, the second-largest cinema chain in Mexico, will indefinitely close its theaters and work with banks to restructure at least $230 million in debt.
The closure of 145 theaters outside the capital area aims to alleviate liquidity issues until the release of major films resumes and operational restrictions are lifted.

Cinemex has hundreds of cinemas like this one nationwide. Photo: Oxígeno Arquitectura.

02/12/2021

Grupo Cinemex, the second-largest cinema chain in Mexico, will indefinitely close its movie theaters and work with banks to restructure at least $230 million in debt.

The company, owned by the Larrea family, who also controls copper mining company Grupo México, is reportedly finalizing an agreement with banks such as BBVA, HSBC Holdings, Banco Santander, and Bank of Nova Scotia, according to individuals familiar with the private negotiations.

To alleviate liquidity issues, Cinemex has decided to close 145 theaters outside the capital area until Hollywood resumes the release of major films and it becomes clear that the company can operate without severe restrictions, said the sources.

The chain's debt includes a term loan of 4,050 million pesos ($202.6 million) and a term loan of 640 million pesos, both due in March 2023.

Read the full article (in Spanish).

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