Cineworld Bankruptcy’s Impact On Imax Is Blunted By Nature Of Lease Deals, Presence In Top-Grossing Sites, CFO Maintains

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Imax Corp. CFO Natasha Fernandes said the company is “not exposed as much” as other business partners of Cineworld to the Regal Cinemas parent’s bankruptcy filing.The No.

2 global exhibitor made the long-expected move this morning, citing the impact of Covid on its business.Speaking at the Bank of America 2022 Media, Communications & Entertainment Conference, Fernandes credited the nature of lease agreements as well as Imax’s presence in top-grossing markets. “Imax has a longstanding, great partnership” with Cineworld, she said, and “we have a strong liquidity position and a flexible business model, so we can maneuver and navigate changes in the exhibition landscape.”Imax theaters operate under a master lease agreement, she continued. “What that means is that we don’t have single agreements for each screen.

We have one agreement that governs them all. … You’re not exposed as much from that perspective.”As far as the road ahead for Cineworld, she said, the bankruptcy process will allow the exhibitor to “clean up its balance sheet and move forward and continue to operate going forward.

So, if they’re going to operate, they’re going to operate the top complexes. So, [they will] clean up the under-performing complexes and either sell them off or do something with them.