Cineplex appeals $965 M settlement from Cineworld

On Friday, Canada's Cineplex Inc CGX.TO filed an appeal challenging an order by the British cinema operator to pay C $1.23 billion $965.92 million in damages to Cineplex for abandoning a planned takeover.

The London-listed company said it disagreed with the submissions made by Cineplex and will respond to it, adding that Cineworld does not expect to pay any damages while the appeals are ongoing.

In December, a Canadian court ordered Cineworld, the world's second largest cinema operator, to pay damages after the British firm walked away from a $1.65 billion deal in mid- 2020, citing breaches in the merger agreement by Cineplex. Cineplex rejected the claims and accused Cineworld of avoiding its obligations under the agreement in light of the pandemic's impact on the industry.

The fine was larger than Cineworld's available resources, according to analysts at the time.

Cineworld, which operates Regal Cinemas in the United States, has been struggling with debt of around $8.3 billion and has mooted listing itself or part of its business in the U.S., where it generates the bulk of its revenue.