Cineplex doesn't expect to recoup any material amount of the $1.24B owed by Cineworld

A man walks past a Cineworld cinema in Leicester Square, London, on Oct. 5, 2020. (Alastair Grant / AP)

TORONTO — Cineplex Inc. says it does not expect to recover any material amount from U.K.-based Cineworld Group PLC, its once-suitor which owes the Toronto movie theatre chain $1.24 billion.

U.K.-based Cineworld entered into a restructuring agreement with some of its lenders last week and filed a proposed Chapter 11 plan of reorganization Tuesday.

If Cineworld's plan receives creditor and court approvals, Cineplex says it will only be entitled to distributions from a general unsecured claims pool.

Cineworld walked away from a $2.18-billion deal to buy Cineplex in 2020, sparking a court battle over whether Cineworld had the right to get out of the deal.

An Ontario court ruled in Cineplex's favour in December 2021, awarding the company $1.24 billion in damages, but Cineworld said it would appeal the judgment and Cineplex wanted to push for an even higher payout.

Cineplex also said Tuesday it recorded its highest ever box office for the first 10 days of April, as it topped $30 million compared with $14 million in the same period in 2019.

This report by The Canadian Press was first published April 12, 2023