Bloomberg News

Imax Bondholder Files Default Notice; Deadline Passes

July 03, 2007

Catalyst Capital Group Inc., owner of about $67 million of Imax Corp. (IMX) debt, issued a third ``notice of defaults'' to the maker of giant-sized movie screens after it missed another deadline to file financial reports.

Imax failed to file its 2006 annual report and valid annual and quarterly reports from 2002 to 2006, Catalyst said in a statement sent by its nominee Cede & Co. Catalyst ``demands'' that all defaults be remedied.

Imax said earlier today it expects to be able to file the reports ``shortly.'' The Mississauga, Ontario-based company had said it would file by June 30. On June 29 Imax said it would miss that deadline.

Catalyst spokesman Gabriel de Alba declined to comment. Lisa Murray, a spokeswoman, and Emilio Galvan, a spokesman, both with outside public relations firm Brown Rudnick Berlack Israels LLP, didn't return calls seeking comment. Imax spokeswoman Sarah Gormley also didn't immediately return a call.

Imax on March 29 delayed its 2006 annual report for a second time this year after broadening an investigation into how it accounted for expenses. The U.S. Securities and Exchange Commission and the Ontario Securities Commission began informal inquiries last year into Imax's bookkeeping methods.

Shares of Imax fell 12 cents to $4.20 at 1 p.m. New York time in Nasdaq Stock Market trading (IMAX:US). They have gained 12 percent this year. U.S. stock exchanges closed early today ahead of tomorrow's Independence Day holiday.

Catalyst is a holder of record of more than 25 percent of Imax's 9.625 percent notes due in 2010, according to the statement.

To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net

To contact the editor responsible for this story: Julie Alnwick at jalnwick@bloomberg.net; Jeremy Torobin at jtorobin1@bloomberg.net


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