Shares in FTSE 250 entertainment firm Cineworld Group (LON:CINE) climbed 2.19% to 61.48p (as of 09:15 BST) despite management confirming that Cineplex had initiated legal proceedings against the firm. The case relates to last month’s termination of Cineworld’s proposed takeover. Cineworld rejects the plaintiff’s claims and says that Cineplex had breached a number of its covenants under the Arrangement Agreement and did not remedy the breaches when given an opportunity to do so.
Cineplex is attempting to claim damages of up to C$2.18 billion, but Cineworld believe that the most that could be claimed would be the costs related to the acquisition. Additionally, Cineworld will be filing a counter-claim due to Cineplex’s alleged breaches.