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No such thing as bad publicity. If it highlights CINE has strong leadership, the PR team can highlight the positives of opening up at the end of the month.
If Cineplex claim is that simple to bat away, surely that'll have a negative effect on them ...
Damages claim by CINE to follow or takeover the company
No idea really...
There is a reason that these big acquisition contracts are usually drafted by the purchaser- They are taking most, if not all, of the risk. It appears that Cineworld have multiple exit routes of this. I would presume that it would be as straightforward as Cineplex having breached the 725m debt threshold. If not, Cineworld may also have a course of action under the Company Material Adverse Effect Clause citing COVID and reduced prospect of reopening at full capacity as a reason. Regardless, it seems pretty clear cut that Cineworld were well within their rights to terminate.
Exactly Crumpets, you don't get to be the second biggest cinema chain in the world without knowing how to deal with contracts and deals.
Honestly I'd feel more confident if I'd stayed in cash but hey that's life.
I'm not worried, I see this as another buying opportunity (maybe).
100% agree with this Crumpets
Mooky and co are very, vey savvy and hard buisnessmen.
To think they have blindly pulled out if this is nonsense.
They're canny enough to play this so they either don't pay a penny in the lawsuit or get Cineplex for a lot cheaper than initially proposed.
It's a brutal play but is also why these hard nosed barstards are at the top of their game.
They've engineered this situation to be winners no matter what the outcome.
It was all part of their play. Don't let the media reports spook you out of your investment here.
This is what we expected to happen, seeing it print has thrown some people into a bit of a tizzy. Cineworld and their CEO are not stupid, if they didn't feel they had legal grounds to walk away from the deal or if they didn't feel like going to court could leverage them a better deal then they wouldn't have risked it. All large companies make decisions by weighing up the risk.
My understanding of the situation from articles I've read is that Cineworld backed out due to some legitimate grounds that they haven't made public yet. Cineplex's argument is that Cineworld broke its good faith agreement, meaning that Cineplex is going to try to make the argument that Cineworld purposefully dragged its feet on getting permission from the Canadian comission which then in turn caused Cineplex to fail its agreement over time due to Coronavirus.
I personally think Cineworld was cleverly dragging its feet just waiting for the opportunity it could legally dump the deal. I could be wrong because Cineworld havent announced anything yet but if I'm right its a much harder case for Cineplex to prove a companies intention rather than they straight up wrongfully broke the deal.