Court Declines Cineplex Request To Still Claim $1.24 Billion Judgment From Cineworld

Cineplex Inc. (TSX: CGX) relayed on Wednesday that the United States Bankruptcy Court for the Southern District of Texas declined the firm’s request to claim the court judgment already awarded, related to the breach of contract case with British cinema chain Cineworld Group.

The Canadian theatre chain has a pending court award of US$1.24 billion in damages after the firm won in the Ontario Court against Cineworld. The latter claimed Cineplex breached their contract and thus unilaterally terminated the agreement. However, the court didn’t agree and handed the judgment down in favor of Cineplex.

However, with Cineworld’s bankruptcy filing, the claim “is initially stayed pursuant” to the proceedings, with Cineplex admitting that it is not possible “to predict the timing or final outcome of the appeal of the decision.”

Despite this, Cineplex still asked the bankruptcy court to modify the automatic stay hedged on the award and to be allowed to proceed with the claim in the Ontario court. However, the court did not grant the request, “without prejudice to Cineplex’s ability to seek such relief at a later date.”

The Ontario court judgment is still being appealed by Cineworld, answered by a cross appeal by Cineplex. Both appeals will be heard by the court on October 12-13, 2022. However, Cineplex isn’t optimistic that the full award will be satisfied by the British chain.

“[Even] if Cineworld’s appeal is not successful, Cineworld may not have the ability to satisfy the full amount of any damages or costs awarded by the Court,” the firm added.

Nevertheless, the Canadian theatre chain said it also “remains confident in the recovery of its businesses.”

Cineplex last traded at $8.95 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Silver47 Completes Property-Wide Geochemical, Rock Sampling Program At Adams Plateau, Identifies Numerous Targets

Altamira Gold Identifies Presence Of Second Mineralized Porphyry Body At Cajueiro

Related News

Cineplex Rallies 9% After Posting Nearly Pre-Pandemic Financials In Q1 2022

Cineplex Inc. (TSX: CGX) reported yesterday morning its financial results for Q1 2022, which saw...

Saturday, May 14, 2022, 01:07:00 PM

Cineplex: Canaccord Reiterates $7.00 Target, Upgrades To Hold

Cineplex Inc (TSX: CGX) reported their third quarter results on Friday, reporting revenues of $61...

Tuesday, November 17, 2020, 12:07:00 PM

Cineplex: Canaccord Pegs Chance Of $1.24 Billion In Damages Being Collected At 25%

On December 15th, Cineplex Inc. (TSX: CGX) was awarded roughly $1.24 billion in damages from...

Sunday, December 19, 2021, 03:17:00 PM

Cineplex Sees Q4 2021 Revenues Grow To $300.0 Million

The results are in for Cineplex Inc (TSX: CGX), whom this morning reported its fourth...

Friday, February 11, 2022, 08:13:21 AM

Competition Bureau Sues Cineplex For Misleading Ticket Prices, Firm Says Case Has “No Merit”

Cineplex (TSX: CGX) is being sued by the Competition Bureau for advertising movie tickets at...

Friday, May 19, 2023, 09:42:07 AM