CMX Files Chapter 11 Amid Theater Shutdowns
CMX Cinemas, the eighth-greatest U.S. film theater operator, has filed Chapter 11 individual bankruptcy only a thirty day period immediately after it identified as off its proposed acquisition of Texas chain Star Cinema Grill.
CMX cited the economic crisis precipitated by the coronavirus pandemic that has shuttered theaters all over the U.S.
“We are in a state of total uncertainty as to when we can re-open our theaters and when our buyers will come to feel safe and sound and protected in returning to them supplied that there is presently no vaccine versus the virus,” the U.S. subsidiary of Mexico’s Cinemex reported in a assertion. “We are not able to forecast when — if at any time — shopper quantities will return to pre-crisis amounts.”
The acquisition of SCG, which operates dine-in theaters, would have built CMX the seventh-greatest U.S. theater chain. In terminating the deal, CMX reported on March 26 that “in light-weight of COVID-19 linked fallout” it was not required to near the transaction.
The Chapter 11 filing arrived soon just before a listening to in SCG’s lawsuit looking for a courtroom order that would compel CMX to near the deal. CMX has questioned the individual bankruptcy courtroom to impose an computerized stay on individuals proceedings.
“In a Chapter 11 it is tricky to see how CMX could be compelled to go via with the SCG acquisition,” Celluloid Junkie mentioned.
Because entering the U.S. market place in 2017, CMX has constructed a chain with additional than three,000 screens in 104 U.S. metropolitan areas. In asserting the deal on March sixteen, it reported the SCG acquisition was a “perfect fit” and would bolster its “robust expansion programs in the U.S.”
SCG filed its match April two, alleging CMX was employing the coronavirus crisis as a pretext for backing out of the deal.
“Far from remaining unexpected, the prospective affect of the coronavirus was a substantial element discussed by the get-togethers through their negotiation of the agreement,” the match reported. “There is no question that Cinemex entered into the agreement with its eyes huge open to the pandemic and its prospective outcomes.”
Aaron Davidson/Getty Photos for CMX Cinemas