Cinar Sells Twin Sisters
Kim Mitzo Thompson and Karen Mitzo Hilderbrand, the founders of Twin Sisters Productions, Inc., have repurchased from CINAR Corporation the company they founded. The deal was concluded on January 13, 2003 for US$1.5 million. The sale also settled the outstanding litigation claims against CINAR by Twin Sisters. CINAR acquired Twin Sisters in February of 2000, and in April 2001, the former shareholders of Twin Sisters Productions brought legal action against CINAR, alleging misrepresentations relating to earn-out clauses as well as other considerations negotiated during the acquisition. After many tumultuous years filled with problems and lawsuits related to illegally obtained Canadian tax credits, non-approved investments in offshore accounts and the misappropriation of funds by senior executives, CINAR is managing to close the door on some of its more troubling episodes. The company recently settled various class actions brought in Canada and the United States, and has regained its standing with Telefilm Canada, after being suspended from access to that organization's funding and support since 1999.