Catalyst Commences Oppression Remedy Application Against IMAX and Seeks Appointment of Inspector

    TORONTO, September 10 /CNW/ - Catalyst Fund Limited Partnership II
("Catalyst") announced today that on Friday, September 7, 2007, it commenced
an application, under, among other things, the oppression remedy provisions of
the Canada Business Corporations Act, in the Ontario Superior Court against
IMAX Corporation ("IMAX") arising out of the restatement of IMAX's financial
statements, certain debt defaults, complaints regarding the content and
accuracy of IMAX's public statements and regulatory filings and concerns
regarding the company's lack of both internal financial controls and a
remediation plan. Catalyst is a noteholder and is a shareholder of IMAX.

    The relief sought in this court application includes an order appointing
an inspector to do the following for the benefit of all security holders: (i)
expediting the resolution of all outstanding inquiries from the Ontario
Securities Commission and United States Securities and Exchange Commission
(including the public disclosure of the status of the requests from these
regulators) and facilitating any further restatements of financial results
arising from those inquiries; (ii) taking all necessary steps to ensure the
accuracy of IMAX's financial statements as required for all the restated
periods as well as going forward;(iii) reviewing the accuracy of IMAX's
internal controls; (iv) overseeing the development and implementation of an
appropriate remediation plan; and (v) reviewing and reporting on whether by
virtue of its financial restatements, any additional indebtedness was incurred
contrary to covenants (contained in the indenture which governs its
outstanding notes) related to indebtedness and/or related parties

    In the alternative to the appointment of an inspector, Catalyst seeks an
order for the benefit of all security holders that IMAX immediately produce
all relevant documentation regarding the current state of the SEC and OSC
inquiries, the status of the restatement of IMAX's financial statements, all
information regarding the nature and timing of the financial controls
remediation plan, and full particulars of any transactions that put IMAX
offside of its debt covenants or the related parties transaction provisions of
the indenture.

    In addition, Catalyst seeks an order declaring that the consent
solicitation process commenced by IMAX in relation to certain debt defaults
under the indenture was invalid and of no effect.

    An initial court date of September 13 has been set for the scheduling of
the hearing of the application.

For further information:

For further information: Catalyst Fund Limited Partnership II Gabriel de
Alba, 416-945-3020

Organization Profile

Catalyst Fund Limited Partnership II

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890