Cineplex is weighing a possible merger with Cineworld’s U.S. theatre chain Regal Entertainment Group, according to a report from the Wall Street Journal.

The Canadian company has allegedly approached U.K.-based Cineworld investors about a potential takeover of the U.S-based division, giving them back debt and stock as part of the merger. The Wall Street Journal attributed the report to “people familiar with the matter.”

Spokespeople for Cineworld and Cineplex declined to comment on the report.

Cineplex previously stated it would explore “all avenues” to advance its claim against Cineworld after winning a court dispute over the failed $2.8 billion merger between the two companies.

Cineworld filed for bankruptcy with the U.S. Bankruptcy Court for the Southern District of Texas earlier this month in an effort to “significantly reduce” its debt, with an estimated US$1.94 billion owed to lenders.

Both Cineplex and Cineworld are scheduled to appear at a hearing at the Court of Appeal for Ontario on Oct. 12 and 13 after Cineworld filed an appeal of the Ontario Superior Court of Justice’s decision to award Cineplex $1.24 billion in damages. Cineplex has stated that even if Cineworld loses the appeal, the company may not be able to “satisfy the full amount of any damages or costs awarded.”

The companies have been in an ongoing legal dispute since Cineplex filed a lawsuit in July 2020 following Cineworld’s decision to terminate the agreement to acquire the Canadian chain, stating the decision was a case of “buyer’s remorse.” Cineworld responded with a counterclaim that would eventually be denied by the court.