TORONTO — Cineplex Inc. says it remains focused on recouping the value of a judgement against Cineworld Group PLC despite the U.K.-based movie theatre operator's bankruptcy filing in the U.S.
Toronto-based Cineplex was awarded $1.24 billion in damages after Cineworld walked away in 2020 from its $2.18-billion deal to buy the Canadian theatre chain, while Cineplex filed documents early this year pushing for an even higher payout.
Cineplex says it will explore all avenues available to advance its claims against Cineworld, though it notes that the movie chain indicated that it believes the bankruptcy filing has stayed Cineplex's claim against the company.
Cineworld, which has built up US$4.8 billion in net debt not including lease liabilities, said it had financing in place to help ensure its operations continue as usual while it undergoes a reorganization, with an expected exit from Chapter 11 bankruptcy during the first quarter of 2023.
A hearing on Cineworld's appeal of the judgment against it, and Cineplex's cross appeal, is scheduled for Oct. 12 and 13, but Cineplex notes that the bankruptcy proceedings add extra uncertainty to the outcome and Cineworld's ability to pay any damages awarded.
While Cineworld struggles with debt and lower-than-expected attendance, Cineplex said it remains confident in the recovery of its business with August volumes stronger than expected and its outlook optimistic for the months ahead.
- With files from The Associated Press
This report by The Canadian Press was first published Sept. 7, 2022.
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