Cinar Recovers $50.9M More In Unapproved Investments
Cinar Corp. has signed a deal with Bahamas-based Globe-X Management to recover US$50.9 million that was invested in offshore accounts without board approval. The investments were originally to be paid by November of this year, however the new agreement has Globe-X paying out weekly installments between now and August 17, 2001. As part of the new arrangement, Cinar has dropped all legal charges made against Globe-X. Back in March, it was discovered that $122 million of Cinar funds were invested into companies owned by Norshield International one of which was Globe-X -- without board knowledge. Company executives Ronald Weinberg, Micheline Charest and Hasanain Panju knew about the investments, with former president and co-CEO Weinberg and senior executive VP Panju signing off on them. All have since been fired, however Weinberg and Charest, who founded the company and still own a majority share, have refused to leave the company's board of directors. Moreover, there is still roughly $12 million not accounted for, which Globe-X claims they sent to Cinar last November. Cinar president Barrie Usher said, "The funds went immediately into the numbered-company accounts of two of the former senior officers. Globe-X contends that that was Cinar's money. The related parties contend it was their own money, and we're trying to sort out exactly whose money it is."