RE: Court Case26 Jul 2020 01:26
The savvy investor will have read up on this so it perplexed me when a de-tamper tries to spin it.
This a matter of litigation between two companies.
This is corporate law and it will take YEARS to play out by which time Cineworld will have recovered, a vaccine widely available (though it may not be needed) and global economies recovered to pre covid 19 levels.
Regardless, I take my facts from the source and Cineworld RNS reiterates
As previously announced, Cineworld DID NOT breach these (or any) obligations or duties and will vigorously defend this claim. 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.
Cineworld terminated the Arrangement Agreement because Cineplex breached a number of its covenants under the Arrangement Agreement. Cineplex did not remedy these breaches when given the opportunity to do so. Cineworld 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. Cineworld intends to counter-claim against Cineplex for these damages and losses.
You don’t put out a RNS like that unless you have discussed with your legal council.
Do I believe highly trained specialist lawyers on Mergers & Acquisitions or a shorter? <- Rhetorical question.
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