Cineplex is exploring “all avenues to advance its claim against Cineworld” after the U.K. theatre chain filed for bankruptcy in a U.S. court on Wednesday (Sept. 7).

The Toronto-headquartered company warned investors that the Chapter 11 filing has made it impossible “to predict the timing or final outcome of the appeal” of the Ontario Superior Court of Justice’s December 2021 decision to award Cineplex $1.24 billion in damages after Cineworld pulled out of a planned $2.8 billion acquisition.

Cineworld filed an appeal of the decision on Jan. 12, with Cineplex later filing a cross appeal. The two companies are scheduled for hearings at the Court of Appeal for Ontario on Oct. 12 and 13.

“Further, even if Cineworld’s appeal is not successful, Cineworld may not have the ability to satisfy the full amount of any damages or costs awarded by the Court,” read the statement.

Cineworld commenced a Chapter 11 filing with the U.S. Bankruptcy Court for the Southern District of Texas this week to “significantly reduce” its debt, entering with “an approximate [U.S.]$1.94 billion debtor-in-possession financing facility from existing lenders.”

Cineplex stated it is reviewing the filing with its financial advisor Moelis & Company LLC and lead counsel Goodmans LLP, which includes the position that “Cineplex’s claim against Cineworld is initially stayed,” pursuant to the bankruptcy proceedings.

The Canadian company’s most recent financial report revealed it was nearing pre-pandemic revenue levels, thanks to a boost from high-performing titles such as Top Gun: Maverick. Cineplex warned investors that August and September would see a slowed performance, but says August was “stronger than initially expected” and it “remains optimistic” about consumer demand in Q4 2022 and Q1 2023.