Catalyst Sends IMAX Notice of Acceleration of Senior Notes.Also Sends Direction to Indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. Trustee Pursuant to Indenture Seeking Legal Action to Enforce Remedies for Defaults TORONTO -- Catalyst Fund Limited Partnership II, a holder of more than 33% of the 9.625% Senior Notes Due 2010 issued by IMAX IMAX Noun a film projection process that produces an image ten times larger than standard Corporation (the "Senior Notes"), advised IMAX in writing on October 29, 2007, that it had caused a notice of acceleration to be delivered to IMAX accelerating IMAX's obligation to pay all amounts due on the Senior Notes, including principal, interest, and any premium due pursuant to the Trust Indenture. Pursuant to the Indenture, any amounts due under an acceleration notice are payable immediately. Since April 2007, Catalyst has caused multiple notices of default to be delivered to IMAX. In response to the notices of default, IMAX has denied that any events of default have occurred and has refused to provide requested financial and other information for all stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. . In addition, Catalyst has delivered a direction to the Indenture Trustee, as required by the Indenture, seeking to have the Indenture Trustee commence legal action against IMAX to enforce all remedies available under the Indenture. Should the Indenture Trustee opt not to commence an action, Catalyst will be free to bring an action on its own behalf against IMAX. In any such action, Catalyst would be seeking to realize on its security. Catalyst is currently pursuing a separate oppression remedy application against IMAX before a Canadian court challenging, amongst other things, the reliability of IMAX's financial reporting. After the commencement of Catalyst's application, IMAX announced on October 5, 2007, that it would again be restating its past financial reports, which it had just purported pur·port·ed adj. Assumed to be such; supposed: the purported author of the story. pur·port  ed·ly adv. to restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state in July. In August, as well as during its September 2007 Annual Shareholders Meeting, IMAX had indicated that its restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. process had been completed. In the current application, Catalyst has filed an opinion of an expert in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of law, which supports its position that IMAX is in default under the Indenture. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion