Good news for crisis-hit Astoria Cinemas

Things are looking up for Sweden's crisis-hit Astoria Cinemas chain, after a majority of its creditors accepted plans for the company's reconstruction.

“We have now received positive replies from 75 percent of the creditors and creditors representing 75 percent of the total value of the debts,” said lawyer Staffan Cassmer.

“This was a precondition to secure the reconstruction of Astoria Cinemas,” he said.

Cassmer was appointed late last year to oversee the reconstruction of the company, after it cancelled repayment of its debts.

“We have also applied to the district court for a public settlement.”

The latest news relieves the pressure on the troubled chain, but Astoria still needs to find new financing to survive in the long term.

“There’s a lot happening at the moment. We are having discussions with a large number of potentially interested parties. The owners will be meeting next week, so we should soon see some kind of solution,” Cassmer said.

Astoria Cinemas has debts of 80 million kronor. Non-prioritised debts stand at 55 million kronor. The rest of the money is bank debts. The chain has sold its provincial cinemas to SF Bio for 34 million kronor. All that remains is its sites in Stockholm, Gothenburg and Malmö.