Cineworld plans to file its reorganization plan by Oct. 31, an attorney for the giant chain said today at a hearing. It also won’t be forced to state its case in a Canadian appeals court next month for reneging on a merger agreement with Cineplex.Judge Marvin Isgur of the Southern District of Texas, who is leading bankruptcy proceedings for the U.K.-based exhibitor, declined a motion by Cineplex to move forward with the hearing in an Ontario appeals court.
Cineplex won a $1.29 billion Candadian dollars (about $1B US) judgement against Cineworld for the latter’s pulling out of their 2019 merger deal.
Cineworld had agreed to buy Cineplex for about $3 billion.Cineworld appealed and arguments were set for Oct. 12 and 13.Cineworld’s Sept.
7 bankruptcy filing, with just $4 million of cash on hand and $5 billion in debt, resulted in a stay on most proceedings with the company focused on financing, keeping its business running and putting together the plan for its post-Chapter 11 era.Cineplex had filed a motion for relief of the stay to keep the appeal court dates, which Isgur denied after hearing from attorneys on both sides.
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