Cinar Waits For $10M
Created 06/07/2000 - 00:00
files/pictures/picture-35.jpgAmidst the resignation of their three-month term CFO, Cinar Corp. announced it would regain CA$10 million more of the $122 million that was invested without the company boards approval. Cinar expects to receive the $10 million from Nassau, Bahamas-based Globe-X Management Ltd. after the investment matured May 31, 2000. Cinar said Globe-X required five business days from May 31 to "process transactions for administrative purposes" and that Cinar expected to receive the $10 million within that time. The ARTHUR producer is still negotiating the recovery of the remaining $66 million in investments, which are to mature on staggered dates from now to November 2000. Globe-X is one of three financial institutions that made unauthorized investments for Cinar, which were reportedly signed off on by Cinars now resigned co-founder Ronald Weinberg and the now fired CFO Hasanain Panju. Subsequently, Jeff Gerstein took over the CFO position after Panjus removal, but now only three months after taking the spot, Gerstein has stepped down. He will now assume full-time responsibility for tax issues within Cinar, as vice president of taxation. In the meantime, as the childrens producer searches for a new CFO, PricewaterhouseCoopers LLP will assist management on financial issues. In addition, the TV production company again released concerns on whether it will be able to meet its June 30, 2000 deadline for releasing its financial findings. However, the firm stated it will work diligently to be ready for an audit in two weeks. Tax fraud and unapproved investment rumors forced the Toronto Stock Market to cease trading Cinars stock nearly four months ago.