Cinar Extends Bank Credit
Cinar Corporation has entered into an agreement with its banks to extend its credit line until October 15, 2001. Of US$24 million previously outstanding, half of the amount is still with standing. In certain circumstances prepayments will be required prior to October 2001. The plagued children's producer also announced that it would release its unaudited 2000 financial statements by March 31, 2001. "Cinar continues to have a strong balance sheet. The company recently released financial information indicating, as at May 31, 2000, assets of CA$436.6 million, liabilities of $95.7 million and shareholders' equity of $341 million," said Barrie Usher, president and CEO. Currently, the company is looking for a new bank to audit its financial statement leading back to 1996. The firm's original self-imposed auditor, Ernst & Young, resigned in late January after the company's failure to produce key information about possible fraud and other illegal acts at the animation production house. The company has been racked with problems for over a year regarding illegally obtained Canadian tax credits; non-approved investments in offshore accounts; and the misappropriation of funds by senior executives, including founders Micheline Charest and Ronald Weinberg.