Update on Cineplex Inc. litigation

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	[phone] [e-mail]
Finsbury James Leviton Ed Treadwell	[e-mail]

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

 

END

 

 

UPDFFUSSIEFSEIE