Court Battle Begins Between Toronto-based Cineplex and UK Cineworld Over Discarded Acquisition | The Canadian News

TORONTO – Two titans in the theater business are heading to court in Toronto today in what could well be a multi-billion dollar test case for pandemic-era litigation.

Toronto-based Cineplex is seeking to recover $ 2.18 billion in damages from Cineworld Group PLC after the UK cinema giant scrapped its planned purchase of the Canadian cinema chain.

Cineworld walked away from the December 2019 acquisition deal amid strict economic lockdown measures in June 2020, alleging material adverse effects and violations by Cineplex.

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For its part, Cineplex has called Cineworld’s decision to terminate the deal “nothing more than a case of buyer’s remorse,” and the company’s claim statement shows that it will argue that Cineplex met all of its obligations.

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The legal battle will depend on Cineworld arguing that it had the right to terminate the agreement without payment because Cineplex deviated from the “normal course”, when it deferred its accounts payable for at least 60 days, reduced the expense to the “indispensable minimum” and stopped paying. . film owners, studios, distributors and suppliers at the beginning of the pandemic.

The case, which is being heard by the Ontario Superior Court of Justice, will not change Cineworld’s decision to scrap the Cineplex deal, but legal and entertainment experts say it will offer a window into the future of Canadian films and may inspire. plus. suits.

© 2021 The Canadian Press



Reference-globalnews.ca

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