National Amusements, a prominent media and movie-theater enterprise controlling Paramount Global PARA, is in the process of renegotiating the conditions of its debt agreements due to heightened financial challenges, according to a report by the Wall Street Journal.
Citing insider sources, the Journal reveals that National Amusements’ annual report acknowledged the predicament of a subsidiary responsible for operating movie theaters. Specifically, the report highlighted the impact of reduced cash flows, generating some uncertainty regarding National Amusements’ ability to sustain its operations—an indication known as “going concern.” This cautionary language has been included in National Amusements’ reports since the onset of the pandemic.
Insiders familiar with the matter have assured the Journal that a resolution is expected in the coming weeks. In response to the situation, a spokesperson for National Amusements reassured stakeholders that the company remains in a viably strong financial position and categorizes the ongoing negotiations as a purely technical matter.
While shares of Paramount experienced a decline of 5.1% during regular trading hours, post-market trading witnessed a further decrease of 1.8% on Friday.
