Cineplex Responds to Cineworld's Chapter 11 Filing

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[{"type":"text","content":"\n \n \n \n Cineplex Responds to Cineworld's Chapter 11 Filing\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n TORONTO\n \n \n ,\n \n \n Sept. 7, 2022\n \n \n /CNW/ - (TSX: CGX) – Cineplex Inc. (\"Cineplex\" or the \"Company\") responds to the Chapter 11 filing in\n \n the United States\n \n commenced today by Cineworld Group plc (\"Cineworld\") and certain of its subsidiaries (collectively the \"Cineworld Bankruptcy Proceedings\"). Cineplex remains focused on maximizing and monetizing the value of the judgment awarded against Cineworld by the Ontario Superior Court of Justice (the \"Court\"), as described further below. Cineplex understands from Cineworld's publicly filed materials, that it is Cineworld's position that Cineplex's claim against Cineworld is initially stayed pursuant to the Cineworld Bankruptcy Proceedings.   Cineplex will review in detail the Court materials filed in connection with the commencement of the Cineworld Bankruptcy Proceedings and, with the assistance of Moelis & Company LLC as its financial advisor and Goodmans LLP as its lead counsel, will explore all avenues available to advance its claim against Cineworld, and will actively pursue all available alternatives in the best interests of the Company and its stakeholders.\n \n \n \n \n \n \n \n \n \n \n Background\n \n \n \n As previously discussed in further detail in the Company's publicly filed materials, on\n \n December 14, 2021\n \n , the Court released its decision in the action commenced by Cineplex against Cineworld (the \"Decision\"). The Court held that Cineplex did not breach any of its covenants in an arrangement agreement between Cineplex and Cineworld dated\n \n December 15, 2019\n \n (the \"Arrangement Agreement\"), and that Cineworld had no basis for terminating the Arrangement Agreement. The Court held that Cineworld breached the Arrangement Agreement and repudiated the transaction to acquire Cineplex, which actions precluded Cineplex from seeking specific performance and entitled Cineplex to monetary damages....

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