Cineworld Ordered To Pay £725 Million For Abandoning Cineplex Deal

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The Ontario Superior Court ruled in favour of Cineplex and awarded the Canadian group damages of £725 million for lost synergies. 

Cineplex began legal proceedings shortly after the deal was scrapped, claiming a breach of good faith by Cineworld. The group claimed damages of $2.18 billion minus the value of shares retained by its shareholders. Cineplex said Cineworld abandoned the deal because of “buyer’s remorse” due to the impact of the coronavirus pandemic on business. 

Cineworld launched a counterclaim, saying it had scrapped the deal with Cineplex due to the group breaching several of its covenants. It also sued for compensation, costs, and financing costs. 

In a statement, Cineworld said it disagrees with the judgement by the Ontario Superior court and will appeal. The company also said it does not expect damages to be payable while any appeal is ongoing. 

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