Cinar sues for funds in Bahamas

Company missing $122 million

MONTREAL — Embattled Canuck TV company Cinar Corp. has filed a lawsuit in the Bahamas against several Bahamas-based financial companies in an attempt to regain $76 million in missing Cinar funds.

Late Monday, Cinar announced that it is suing Norshield Intl. Ltd., Globe-X Management Ltd., Globe-X Canadiana Ltd., and Robert Daviault, an officer of Globe-X Management Ltd. and/or Globe-X Canadiana Ltd.

Earlier this month, Cinar founders Micheline Charest and Ronald Weinberg were forced to resign their exec positions with the Montreal-based company after it was revealed that some $122 million in Cinar cash was missing in action.

The money had been transferred to Norshield, a Nassau-based investment management company, without board approval.

On March 3, the board learned that the $122 million in investment grade securities were held in the name of an affiliate of Norshield called Globe-X Management Ltd., instead of directly for Cinar. About $86 million was margined to purchase commercial paper of Globe-X Canadiana Ltd., a company related to Globe-X Management.

According to Cinar, the margin agreement was inked by former senior executive vice president Hasanain Panju, who was fired when the scandal first broke.

Cinar was able to recover around $35 million of its funds on March 6, and, on March 17, recovered a further $10 million.

Cinar’s financial position has been further weakened now that all of the major funding agencies in Canada have cut their ties to the company. The company says it has sufficient cash and liquid assets on hand to meet all existing production commitments.

Reps from Cinar have been negotiating with execs from Globe-X Management and Globe-X Canadiana in an attempt to regain the funds, so far without success.

New Cinar CEO Barrie Usher said the Bahamas lawsuit was “required to protect the interests of the company.”

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