Catalyst withdraws lawsuit against IMAX

MUMBAI: Catalyst Fund Limited Partnership II has withdrawn the lawsuit it filed against IMAX in the New York state Supreme Court.


 


Catalyst was seeking to invalidate the consents the company received from a majority of its bondholders on 16 April 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 10 May. Catalyst then asked the court for permission to withdraw the suit, which was granted on 9 October. 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 without merit.


 


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 10 October. The company believes it is in compliance with the senior notes indenture and that Catalyst’s claims are without merit.

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