UK-based Vue Cinemas is reorganizing under new ownership after a debt-for-equity swap announced earlier this week. The deal wiped away $465M of debts Vue had incurred during the pandemic when many European governments ordered theatres and other public venues to shut down to control the spread of COVID.
The asset manager Barings and hedge fund Farallon Capital have taken a majority share in the exhibitor, one of Europe’s largest. Vue’s founder Tim Richards announced that the new arrangement will ensure a strong financial footing for his company, which operates more than 200 theatres across ten European countries.
Vue will also have access to $75M in additional liquidity, which will allow it to resume its “buy and build” approach to expanding. Vue’s ticket sales have rebounded significantly this year. Over the past year, NO TIME TO DIE and SPIDER-MAN: NO WAY HOME has produced two of the highest grossing box office takes in UK history. More recently, sales during June 2022 have exceeded the average June sales for the three years prior to the pandemic.