The U.K.-based movie theatre chain has been in contact with lawyers to file Chapter 11 bankruptcy protections in the U.S. and is considering a similar insolvency proceeding in the United Kingdom. Cineworld shares dropped Friday after The Wall Street Journal first reported the news. (The Wall Street Journal)
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The U.K.-based movie theatre chain has been in contact with lawyers to file Chapter 11 bankruptcy protections in the U.S. and is considering a similar insolvency proceeding in the United Kingdom. Cineworld shares dropped Friday after The Wall Street Journal first reported the news. (The Wall Street Journal)
Talking Point: The move comes as cinema companies struggle to recover from the pandemic. Last year, the Ontario Superior Court of Justice ruled Cineworld owes Toronto-headquartered Cineplex $1.24 billion in damages after backing out of its 2019 takeover offer. Cineworld has yet to pay and is set for appeal hearings in October. “We acted in good faith and the fault lies with Cineplex,” said Cineworld CEO Mooky Greidinger in March. Cineworld’s final plea also stated that “in the event that Cineworld is unsuccessful on appeal, the group would not have sufficient liquidity to pay the existing level of damages awarded.” Cineplex did not immediately respond to The Logic’s request for comment. Its shares closed down just over two per cent Monday.
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