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

Mooky Greidinger

Israel Greidinger

Nisan Cohen

Manuela Van Dessel

 

+44 (0) 20 8987 5000

investors@cineworld.co.uk

Finsbury

James Leviton

Ed Treadwell

 

 

cineworld-lon@finsbury.com

 

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

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