Search form

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."

Rick DeMott's picture

Rick DeMott
Animation World Network
Creator of Rick's Flicks Picks

Tags