TORONTO, Oct. 11 /CNW/ - IMAX Corporation (NASDAQ: IMAX; TSX:IMX) today
reported that Catalyst Fund Limited Partnership II ("Catalyst") has withdrawn
the lawsuit it filed against IMAX in the New York State Supreme Court.
Catalyst was seeking to invalidate the consents the Company successfully
received from a majority of its bondholders on April 16, 2007 extending the
deadline to file the Company's annual and other reports and waiving any
existing defaults arising from a failure to comply with the reporting covenant
under the indenture governing the Company's senior notes.
IMAX viewed the suit as entirely without merit and immediately moved to
dismiss the complaint when it was filed on May 10, 2007. Catalyst then asked
the Court for permission to withdraw the suit, which was granted on October 9,
2007. In September, Catalyst filed an application with the Superior Court for
the Province of Ontario to litigate substantially the same matter in Canada.
IMAX is contesting that application as well, and similarly views it to be
Catalyst unsuccessfully opposed the Company's consent solicitation and
unsuccessfully attempted to trigger an event of default under the Company's
senior notes indenture on numerous occasions. Most recently, Catalyst issued a
purported notice of default dated October 10, 2007. The Company believes it is
in compliance with the senior notes indenture and that Catalyst's claims are
About IMAX Corporation
IMAX Corporation is one of the world's leading entertainment technology
companies, specializing in digital and film-based motion picture technologies.
The worldwide IMAX network is among the most important and successful
theatrical distribution platforms for major event Hollywood films around the
globe, with IMAX(R) theatres delivering the world's best cinematic
presentations using proprietary IMAX, IMAX(R) 3D, and IMAX DMR(R) technology.
IMAX DMR is the Company's groundbreaking digital remastering technology that
allows it to digitally transform virtually any conventional motion picture
into the unparalleled image and sound quality of The IMAX Experience(R).
IMAX's renowned projectors display crystal-clear images on the world's biggest
screens, and the IMAX brand is recognized throughout the world for
extraordinary and immersive entertainment experiences for consumers. As of
June 30, 2007, there were 290 IMAX theatres operating in 40 countries.
IMAX(R), IMAX(R) 3D, IMAX DMR-, IMAX MPX-, and The IMAX Experience(R) are
trademarks of IMAX Corporation. More information on the Company can be
found at www.imax.com.
This press release contains forward looking statements that are based on
management's assumptions and existing information and involve certain risks
and uncertainties which could cause actual results to differ materially from
future results expressed or implied by such forward looking statements.
Important factors that could affect these statements include ongoing
discussions with the SEC and OSC relating to their ongoing inquiries and the
Company's financial reporting and accounting, the timing of theatre system
deliveries, the mix of theatre systems shipped, the timing of the recognition
of revenues and expenses on film production and distribution agreements, the
performance of films, the viability of new businesses and products, risks
arising from potential material weaknesses in internal control over financial
reporting and fluctuations in foreign currency and in the large format and
general commercial exhibition market. These factors and other risks and
uncertainties are discussed in the Company's Annual Report on Form 10-K for
the year ended December 31, 2006, as well as the Company's Quarterly Reports
on Form 10-Q.
For further information:
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