Theater chain National CineMedia’s 10-Q SEC filing cited concern about its ability to meet its debt covenants, Bloomberg Law reported. “The Company does not expect to meet its financial covenants within one year following the date that these financial statements are issued," according to the filing. "If these financial covenants are not met a majority of the lenders of the Senior Secured Credit Facility are permitted under the Credit Agreement to accelerate the debt which could also result in a cross-default under NCM LLC’s senior notes. Considering current liquidity sources, the company in its filing said that it would not be able to repay its total outstanding debt balance. "These conditions and events raise substantial doubt about the Company’s ability to continue as a going concern," according to the filing.
