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Cineworld could run out of cash within weeks unless it secures a lifeline from investors, analysts have warned.
The world’s second-biggest cinema chain had roughly £308million in the bank in June, but Bank of America said it was expected to burn through £324million in the following six months.
‘This suggests the group could run out of cash in November or December,’ its analysts told clients.
Cineworld had roughly £308m in the bank in June, but Bank of America said it was expected to burn through £324m in the following six months
Cineworld warned of a cash crunch in its half-year results last month, when it unveiled a £1.3billion loss.
It had previously said it would need to raise between £154million and £231million to stay afloat.
Last week it said it was closing all venues again due to weak demand – a move partly prompted by the delayed release of the next James Bond film starring Daniel Craig.
Bank of America thinks it will now require £380million to survive until the spring, the current anticipated release date for many blockbuster films.
And they warned that figure could leap higher to £540million if the company does not renegotiate terms on existing debts.
Cineworld is in talks with lenders about securing the fresh relief and may not survive without a deal.
Cineworld’s shares fell 4.6 per cent, or 1.35p, to 28.25p.
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