Cineworld says major shareholder to refinance loans

FILE PHOTO: General view of an empty cinema foyer at Cineworld in Hemel Hempstead as the number of coronavirus cases grow around the world, in Hemel Hempstead, Britain, March 17, 2020. REUTERS/Matthew Childs

(Reuters) - Britain's Cineworld CINE.L said on Wednesday its largest shareholder Global City Theatres (GCT) has agreed to refinance loans secured on its 20% holding of the cinema operator's shares.

The loans will be refinanced by Sand Grove Capital Management to GCT and include a charge over its holding of Cineworld shares, the company said.

GCT will not have to make any service or amortization payments for three years after the deal, nor are there any margining requirements, Cineworld added.

Reporting by Tanishaa Nadkar in Bengaluru; Editing by Shailesh Kuber