National Amusements, the media and movie-theater company that controls Paramount Global PARA is trying to rework the terms of some of its debt following the disclosure of steeper financial difficulties, the Wall Street Journal reported on Friday. The Journal, citing people familiar with the matter, said the disclosure in National Amusements’ annual report pertained to a subsidiary of that owns movie theaters, adding that the report said “lower cash flows had created some uncertainty about National Amusements’ ability to continue as a going concern.” That “going concern” language — a sign a company could face trouble operating and paying its bills — has been in National Amusements’ reports since the pandemic, the Journal said. Sources told the Journal that the situation was likely to be fixed in the weeks ahead, and a National Amusements spokeswoman said the company was on solid financial footing and that the negotiations were “an entirely technical matter.” Shares of Paramount were down 1.8% after hours on Friday, after finishing regular trading 5.1% lower.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
0
0
