The Duke chokes Edmund to death and then in rage Chanticleer engages in a fierce battle and destroys the Duke.

All of the animals come up to Edmund as a cat and we see him change back into his human form.

The animals realize he was a boy all along and it turns out the whole film was just one big dream sequence due to Edmund being struck by lightning.

Thanks, LeoLion!

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Read more about this film at The Internet Movie Database.