Cineworld Bankruptcy Freezes Nixed Cineplex Merger Payment Fight

Cineworld Group’s bankruptcy shields the UK-based movie theater operator from having to continue litigating an appeal over a $955 million judgment owed to rival Cineplex Inc. for their failed merger, a judge ruled.

Cineworld’s Chapter 11 gives the company a “breathing spell” from the Canadian court fight, so that it can focus on exiting bankruptcy, Judge Marvin Isgur of the US Bankruptcy Court for the Southern District of Texas ruled during a hearing Wednesday.

Cineworld, owner of Regal Cinemas in the US, agreed to buy Canada-based Cineplex for $1.6 billion in 2019. When Cineworld canceled the deal, Cineplex won a ...