Cash-strapped exhibitor Loews Cineplex Entertainment remains in talks with bank lenders over liquidity needs despite Friday's expiration of a key compliance waiver.
The waiver provides funding under the company's senior secured revolving credit facility. Despite its expiration, Loews "believes that it has adequate available cash to fund its ordinary course working capital needs during the course of these discussions," according to a statement.
The company also noted, however, that bank lenders can still opt to accelerate the maturity of loans, and "the company is not currently in a position to refund this indebtedness."
One of the largest circuits in the U.S., Loews operates 2,965 screens in 365 locations. Like other top theater chains, many of which have resorted to bankruptcy filings, it has been struggling to shed underperforming screens and shrink its substantial losses and roughly $1 billion in debt.
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