Cineworld has been ordered to pay C$1.24bn (£730m) in damages to Cineplex after walking away from a planned merger.
The Ontario Superior Court of Justice found in Cineplex’s favour, saying that the Canadian chain was owed C$1.23bn for lost synergies to Cineplex – around £730m – and C$5.5m for lost transaction costs.
Cineworld had defended the claim, saying that it had terminated the Arrangement Agreement because Cineplex had breached a number of its covenants.
It had counter-claimed against Cineplex for damages and losses suffered as a result of these breaches and the acquisition not proceeding, including Cineworld’s financing costs, advisory fees and other costs.
Cineworld said it “disagrees with this judgment and will appeal the decision”.
The C$2.8bn deal would have added Cineplex’s 165 cinemas to Cineworld’s existing 786 locations.
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