September 27, 2021

The World Live Breaking News Coverage & Updates IN ENGLISH

The World Live Breaking News Coverage & Updates IN ENGLISH

Court battle begins between Toronto-based Cineplex and U.K.’s Cineworld over scrapped takeover

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, Court battle begins between Toronto-based Cineplex and U.K.’s Cineworld over scrapped takeover, The World Live Breaking News Coverage & Updates IN ENGLISH
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, Court battle begins between Toronto-based Cineplex and U.K.’s Cineworld over scrapped takeover, The World Live Breaking News Coverage & Updates IN ENGLISH

, Court battle begins between Toronto-based Cineplex and U.K.’s Cineworld over scrapped takeover, The World Live Breaking News Coverage & Updates IN ENGLISH

TORONTO — Two titans in the theatre business head to court in Toronto today in what could well be a multi-billion dollar test case for pandemic-era litigation.

, Court battle begins between Toronto-based Cineplex and U.K.’s Cineworld over scrapped takeover, The World Live Breaking News Coverage & Updates IN ENGLISH

Toronto-based Cineplex is seeking to recoup $2.18 billion in damages from Cineworld Group PLC after the U.K. theatre giant scrapped its planned purchase of the Canadian cinema chain.

Cineworld walked away from the December 2019 takeover deal amid strict economic lockdown measures in June 2020, alleging material adverse effects and breaches by Cineplex.

Read more: Cineplex reports $103.7M loss despite rise in revenue as theatres reopened in Q2

For its part, Cineplex has called Cineworld’s decision to terminate the deal “nothing more than a case of buyer’s remorse,” and the company’s statement of claim shows it will argue that Cineplex fulfilled all of its obligations.

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The legal battle will hinge on Cineworld arguing it had the right to terminate the agreement without payment because Cineplex strayed from “ordinary course,” when it deferred its accounts payable by at least 60 days, reduced spending to the “bare minimum” and stopped paying landlords, movie studios, film distributors and suppliers at the pandemic’s start.

The case, which is being heard by the Ontario Superior Court of Justice, won’t change Cineworld’s decision to scrap the Cineplex deal, but legal and entertainment experts say it will offer a window into the future of Canadian movie-going and may inspire further suits.

© 2021 The Canadian Press

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