Cineplex has told investors it does not expect a “material” recovery of its claim against Cineworld as the U.K. theatre chain sets its plan in motion to exit Chapter 11 bankruptcy.

The Canadian exhibitor issued an update on Tuesday (April 11), the same day Cineworld filed its proposed restructuring plan. The plan mentions Cineplex as a holder of a general unsecured claim (GUC), which will receive an “allocable share of the GUC recovery pool,” as well as an aggregate $10 million in cash.

The allocation of the recovery pool has yet to be determined, according to Cineplex. “While at this time the expected distribution amount in respect of Cineplex’s claim is not known, Cineplex does not anticipate that its recovery will be material,” said the statement. “Given the uncertainty to date as to any potential recovery in respect of Cineplex’s claim, no amount has been accrued as a receivable in Cineplex’s financial statements.”

Cineplex was awarded $1.24 billion in damages by the Ontario Superior Court of Justice after it sued Cineworld for terminating its planned takeover. Cineworld filed an appeal following the 2021 decision, after which Cineplex filed a cross-appeal, but the proceedings were stayed after Cineworld filed for bankruptcy.

Cineworld’s restructuring plan will see lenders hold and control roughly 83% of its loans due in 2025 and 2026, and about 69% of outstanding indebtedness, according to a statement from Cineworld. It remains subject to approval from the Bankruptcy Court for the Southern District of Texas as of press time.

“This agreement with our lenders represents a ‘vote-of-confidence’ in our business,” said Cineworld CEO Mooky Greidinger in a statement.

Cineplex also told investors that the superstar box office performance from The Super Mario Bros. Movie has boosted its April numbers, stating the first 10 days of April were the “highest ever” for the comedy in that period. The animated video game adaptation earned an estimated US$204.6 million at the domestic box office over the weekend, according to Comscore. Cineplex said it “welcomed 1.1 million guests over the three-day Easter holiday weekend, making it the busiest weekend so far in 2023.”