Cineplex has hit a roadblock in its proceedings against Cineworld following the U.K. theatre chain’s decision to file for bankruptcy earlier this month.

The United States Bankruptcy Court for the Southern District of Texas has held up Cineworld’s automatic stay proceedings against Cineplex’s claim. As a result, the scheduled Oct. 12 and 13 hearings at the Ontario Court of Appeal will no longer take place, according to a Cineplex statement to investors on Wednesday (Sept. 28).

“The stay of proceedings in the Cineworld bankruptcy proceedings does not impact the merits or quantum of Cineplex’s claim, and Cineplex continues to have its claim against Cineworld,” read the statement, continuing that it is “not possible for Cineplex to predict the timing or final outcome of Cineplex’s judgment against Cineworld, or whether Cineworld will have the ability to satisfy Cineplex’s claim” and it “will continue to explore all avenues and forms of consideration to satisfy its judgment.”

Cineplex sought an order to modify the stay of proceedings following Cineworld’s Chapter 11 filing in the U.S. court, so it could continue with the appeals process. The U.K. company filed for bankruptcy to reduce its debt, stating it owes approximately US$1.94 billion to lenders.

Cineplex had been awarded $1.24 billion in damages by the Ontario Superior Court of Justice in late 2021 after Cineworld terminated its planned takeover of the company. Cineworld filed an appeal in January, with Cineplex filing a cross-appeal shortly after.

The Wall Street Journal reported earlier this week that Cineplex has approached Cineworld lenders on a potential deal to merge with its U.S. division Regal Entertainment Group. Both Cineworld and Cineplex have declined to comment on the report.

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