Key Brand Entertainment Vindicated in Legal Right to Sell Toronto's Panasonic and Canon Theatres to Mirvish Productions


    TORONTO, Aug. 20 /CNW/ - Aubrey Dan's (Dancap Productions) application to
the Ontario Superior Court for an injunction to block the sale of Toronto's
Panasonic and Canon Theatres to Mirvish Productions by Key Brand Entertainment
has been denied by Justice Geoffrey Morawetz. In his ruling Justice Geoffrey
Morawetz said that "Dancap did not negotiate for, or obtain from Key Brand,
any restraint on alienation that would limit Key Brand's right to sell the
Theatres, nor did it negotiate for, or obtain, a right of first refusal or
even a right of first negotiation on the sale of the Theatres. Dancap was
aware that the Theatres would be sold, either by way of a sale or
sale/leaseback, as soon as possible after the closing of Key Brand's
acquisition of the Live Nation Assets to fulfill a condition imposed by J.P.
Morgan. Dancap was also aware that, pursuant to the Co-Presenting Agreement (a
lease agreement), Mirvish had a preexisting right of first negotiation on the
Canon Theatre that would be triggered on a sale of the Canon Theatre." Justice
Morawetz further stated "Dancap has no competing ownership rights of the
Theatres and, in my view, there is no basis for Dancap to stop the sale of the
Theatres to Mirvish. In my view, Dancap has failed to establish that there is
a serious issue to be tried with respect to the ability of Key Brand to sell
the Theatres."
    "We are pleased with this decision and can now focus on the job of
planning an even brighter theatrical future for the city of Toronto and
throughout Canada. We have always acted entirely in the best interests of the
shareholders of Key Brand, including Aubrey Dan. While we want him to become a
successful producer and wish him well with the opening of Jersey Boys in
Toronto next week, we believe that the theatrical community flourishes when
everyone works together of the good of the audience. Negotiation via
litigation, threats and innuendo is not how we want to do business. I just
hope we can now all work together for that brighter future," said John Gore,
CEO of Key Brand Entertainment.
    As Mr. Dan's injunction has been denied by the Ontario Superior Court,
Key Brand Entertainment is now free to close the transaction for the Panasonic
and Canon Theaters with Mirvish Productions.

For further information:

For further information: Michael Hartman, Wayne Wolfe, (212) 398-1800

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