Cineworld, the world's second-largest cinema operator, said it will pay $170m to Regal Entertainment shareholders.
The Regal shareholders were disgruntled with the price they received when the London-listed company took over the US chain in 2017.
According to an agreement, $92m will be held in escrow and be available to Cineworld as additional liquidity under certain circumstances for the payment, Cineworld said today.
The company, with a debt load of $8.44 billion compared to its market value of about $1.19 billion, has taken a hammering since the onset of the pandemic, which saw it burn through cash as cinemas were shut for long periods due to restrictions.
Cineworld included $244.2m in its last annual report, which it said represented the amount payable to a group of Regal's former stakeholders who had challenged whether they received a fair market price for their shares.
The company had said the claim was without merit, backing the $23 per Regal share it paid for the $3.6 billion purchase that positioned it as a top competitor to US-listed AMC Entertainment Holdings.
