La Presse reports that the assets of Quebec’s Guzzo Group have officially entered liquidation following a Superior Court ruling.

The decision allows for the sale of the group’s assets to repay creditors, including CIBC, private lenders, the government, and property owners housing Guzzo cinemas, according to the report.

Judge Michel Pinsonnault emphasized the priority of selling real estate assets over cinemas where possible, stating that transactions would require court approval. Despite this ruling, CEO Vincent Guzzo and his team retain control over day-to-day operations at the company’s screening rooms.

Raymond Chabot Grant Thornton, the appointed receiver, has been authorized to liquidate assets in separate pieces. The receiver will oversee financial management and conduct cinema operations during the liquidation process. To ensure transparency, the court has mandated separate accounting for cinema activities, with revenue projections indicating $1.3 million over 13 weeks and a surplus of $320,000 after expenses.

“If the Guzzo Cinemas division operates at a deficit, the receiver may apply to the Court for appropriate redress,” the judge warned, according to La Presse.

The Guzzo Group, Quebec’s largest independent cinema chain, had been under interim receivership since November 22. Debts owed by the company include over $60 million to CIBC and private lenders, as well as $8.5 million to Quebec and Ottawa for unpaid employee source deductions. Additional amounts are sought by suppliers and building owners.

While the full receivership report remains sealed, a redacted version is expected to be released. Judge Pinsonnault’s decision seeks to minimize disruptions to Guzzo Cinemas while addressing the financial obligations of the company.