Cineworld planned to sell off Cineplex's signage, RecRoom business: theatre CEO

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Cineworld Group PLC's chief executive was planning to sell off Cineplex Inc.'s RecRoom and signage business in a secret initiative he called “Project Jumanji.”

The U.K. cinema chain's head Moshe “Mooky” Greidinger testified Wednesday at the Ontario Superior Court of Justice that his company was looking to find buyers for the businesses because he wanted to focus on theatres and Cineworld didn't have expertise in these other areas.

Greidinger's remarks are part of a multibillion-dollar court case that has seen his cinema company face off against Cineplex, the Toronto theatre chain it announced it would purchase for $2.8 billion in December 2019. Cineworld claims it was out of the ordinary for Cineplex to defer its accounts payable by at least 60 days, reduce spending to the “bare minimum” and stop paying landlords, movie studios, film distributors and suppliers at the pandemic's start.

Greidinger denied those assertions Wednesday, but revealed that some of his staff had concerns about Cineplex keeping its debt below the agreed upon $725 million level. Greidinger monitored such doubts as theatres rapidly started to close around the world because of the spread of COVID-19. It was unlike anything he or his family, which has been in the theatre business since the 1930s, had ever seen.Yet, he was still committed to buying Cineplex, which Cineworld had been eyeing ever since it purchased Regal Cinemas in the U.S. in 2018.“But there were other problems on the other side that were slowly killing the deal.

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