CINAR Suspends Globe-X Lawsuit

Posted In | News Categories: Business | Geographic Region: All | Site Categories: Business
Montreal-based CINAR Corp. has come to an interim deal with Globe-X Management, which halts the pending lawsuit against the investment firm. The agreement allows CINAR Corp. to look into investments made, without board approval, in Globe-X Management's affiliate Globe-X Canadiana. However, the deal does not finalizes the terms in which CINAR will be able to recover the nearly US$76 million invested in Globe-X. The lawsuit was filed on Monday, March 20, in an attempt to recover the funds, which were signed by former co-CEO Ronald Weinberg and senior executive VP Hasanain Panju. The major concern still floating over CINAR's head is the liability they face as a result of the investments. CINAR president Barrie Usher said, "They are going to provide us with information so we can assess the collectability of those assets and whether we think when they mature we'll be able to collect them." Commenting on the pause of the lawsuit, Globe-X spokesman, William Urseth said, 'We're pleased to have this adversarial period with CINAR's current management behind us and we are cooperating with CINAR regarding the status of the assets under this interim agreement." The Canadian TV producer hopes that whatever information ascertained from the new arrangement will appease Toronto and Nasdaq stock market officials' worries about the firm. Both exchanges have ceased trading CINAR stock until a better understanding of the Montreal-based company's financial problems is released.






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