Legal proceedings commenced by Cineplex Inc.

RNS Number : 0568S

Cineworld Group plc

06 July 2020

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

6 July 2020

Cineworld Group plc ("Cineworld" or the "Group")

Legal proceedings commenced by Cineplex Inc. ("Cineplex")

Cineworld confirms that Cineplex has 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 allege that Cineworld breached its obligations under the Arrangement Agreement and/or duty of good faith and honest contractual performance and claim damages of up to C$2.18 billion less the value of Cineplex shares retained by Cineplex shareholders.  As previously announced, Cineworld did not breach these (or any) obligations or duties and will vigorously defend this claim.  In any event, Cineworld believes that Cineplex's claim, if successful, would be limited to its costs and expenses incurred in relation to the Acquisition and would not be assessed by reference to the consideration that was payable under the Acquisition.

Cineworld terminated the Arrangement Agreement because Cineplex breached a number of its covenants under the Arrangement Agreement.  Cineplex did not remedy these breaches when given the opportunity to do so.  Cineworld is entitled to recover from Cineplex all damages and losses that it has suffered as a result of Cineplex's breaches and the Acquisition not proceeding, including its financing costs, advisory fees and other costs incurred.  Cineworld intends to counter-claim against Cineplex for these damages and losses.

Contacts:

Cineworld Mooky Greidinger Israel Greidinger Nisan Cohen Manuela Van Dessel	[phone] [e-mail]
Finsbury James Leviton Rob Allen	[phone] [e-mail]

This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts and involve predictions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend on circumstances, that will occur in the future. Forward-looking statements may and often do differ materially from actual results expressed or implied in these forward looking statements. Any forward-looking statements reflect Cineworld's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the business, results of operations, financial position, liquidity, prospects, growth or strategies of the Group. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. Save as required by law or regulation, Cineworld disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement. Nothing in this announcement is intended to be, or should be construed as, a profit forecast.

The person responsible for arranging the release of this announcement is Fiona Smith, Company Secretary.

 

END

 

 

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