Cineworld’s Debt Crunch Leaves Spurned Merger Partner in Lurch
- Court gave big award to Cineplex; case is now under appeal
- Unclear whether Cineworld can come up with the money: Jacob
A customer buys concessions inside a Cineplex movie theater in Toronto before the pandemic hit in February 2020.
Photographer: Cole Burston/BloombergThis article is for subscribers only.
Cineplex Inc. has a clear path to fixing its debt problem. The trouble is, it’s stuck waiting to receive cash from a rival with a stressed balance sheet.
Canada’s largest movie-theater chain was awarded C$1.24 billion ($970 million) in damages from Cineworld Group Plc by an Ontario court last year, after Cineworld decided to walk away from a takeover offer. Cineworld hasn’t paid and an appeals court has scheduled hearings for October.