Cineworld says that it plans to make a counter-claim against Toronto-based Cineplex for damages over the scrapped acquisition deal between the two companies.
Cineplex is seeking damages over Cineworld’s failed acquisition that could exceed the $2.18 billion CAD that the company would have paid upon closing the deal.
The Canadian company says that Cineworld breached its contractual obligations, and that the agreements between the two exclude outbreaks of illnesses, such as the COVID-19 pandemic, as a circumstance to terminate the deal.
Cineplex says that Cineworld cancelled the deal and acquisition due to “buyer’s remorse.”
The London-England based company claims that it did not breach any obligations. Cineworld announced on June 12th that it was no longer purchasing Cineplex because the company breached certain parts of the contract.
Cineworld now says it “is entitled to recover from Cineplex all damages and losses that it has suffered as a result of Cineplex’s breaches and the acquisition not proceeding, including its financing costs, advisory fees and other costs incurred.”
It added that “In any event, Cineworld believes that Cineplex’s claim, if successful, would be limited to its costs and expenses incurred in relation to the acquisition and would not be assessed by reference to the consideration that was payable under the acquisition.”