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Cineworld legal battle hots up as Cineplex files cross-appeal
28th Jan 2022 07:22
(Sharecast News) - The legal battle between Cineworld and Canada's Cineplex intensified on Friday as the latter submitted a new claim over compensation.
Cineplex has filed a cross-appeal to Cineworld's appeal against a court ruling in December ordering the UK-listed chain to pay CAN $1.23bn (£720m).
Cineworld attempted a takeover of its rival before the Covid-19 pandemic but pulled out once restrictions forced closures of non-essential businesses as governments tried to stymie the spread of the virus.
The case is now with the Ontario Court of Appeal and Cineworld stated it believes the cross-appeal by Cineplex "suggests it should be awarded alternative forms damages" if the level of damages is ruled as too high.
Cineworld, which operates Regal Cinemas in the US, has been struggling with debt of about $8.3bn and has mooted listing itself or a part of its business in the US, where it generates the bulk of its revenue.
"As previously noted, Cineworld disagrees with the decision of the Ontario Superior Court of Justice and it also disagrees with the submissions of Cineplex in its cross-appeal," it added in a statement on Friday.
"Cineworld shall respond to the cross-appeal as part of the appeal process. Cineworld does not expect damages to be payable whilst any appeal is ongoing."
Cineplex has filed a cross-appeal to Cineworld's appeal against a court ruling in December ordering the UK-listed chain to pay CAN $1.23bn (£720m).
Cineworld attempted a takeover of its rival before the Covid-19 pandemic but pulled out once restrictions forced closures of non-essential businesses as governments tried to stymie the spread of the virus.
The case is now with the Ontario Court of Appeal and Cineworld stated it believes the cross-appeal by Cineplex "suggests it should be awarded alternative forms damages" if the level of damages is ruled as too high.
Cineworld, which operates Regal Cinemas in the US, has been struggling with debt of about $8.3bn and has mooted listing itself or a part of its business in the US, where it generates the bulk of its revenue.
"As previously noted, Cineworld disagrees with the decision of the Ontario Superior Court of Justice and it also disagrees with the submissions of Cineplex in its cross-appeal," it added in a statement on Friday.
"Cineworld shall respond to the cross-appeal as part of the appeal process. Cineworld does not expect damages to be payable whilst any appeal is ongoing."