REG - Cineworld Group plc - Update on Cineplex Inc. litigation

CineworldAnnouncement

15/12/2021 07:00

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RNS Number : 6803V  Cineworld Group plc  15 December 2021

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

15 December 2021

Cineworld Group plc ("Cineworld")

Cineplex Inc. ("Cineplex") Litigation

 

On 6 July 2020 Cineworld confirmed that Cineplex had initiated proceedings
against Cineworld in relation to Cineworld's termination on 12 June 2020 of
the Arrangement Agreement relating to its proposed acquisition of Cineplex
(the "Acquisition"). The proceedings alleged that Cineworld breached its
obligations under the Arrangement Agreement and/or duty of good faith and
claimed damages of up to C$2.18 billion less the value of Cineplex shares
retained by Cineplex shareholders.

 

Cineworld defended these proceedings on the basis that it had terminated the
Arrangement Agreement because Cineplex breached a number of its covenants and
counter-claimed against Cineplex for damages and losses suffered as a result
of these breaches and the Acquisition not proceeding, including Cineworld's
financing costs, advisory fees and other costs.

 

The Ontario Superior Court of Justice has now handed down its judgment.  It
granted Cineplex's claim, dismissed Cineworld's counter-claim and awarded
Cineplex damages of C$1.23 billion for lost synergies to Cineplex and C$5.5
million for lost transaction costs. Cineworld disagrees with this judgment and
will appeal the decision. Cineworld does not expect damages to be payable
whilst any appeal is ongoing.

 

Contacts:

 

 Cineworld            +44 (0) 20 8987 5000

 Mooky Greidinger     investors@cineworld.co.uk (mailto:investors@cineworld.co.uk)

 Israel Greidinger

 Nisan Cohen

 Manuela Van Dessel

 Finsbury

 James Leviton        cineworld-lon@finsbury.com (mailto:cineworld-lon@finsbury.com)

 Ed Treadwell

 

The person responsible for arranging the release of this announcement is
Israel Greidinger, Deputy CEO.

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