Dancap goes to court over Toronto theaters
Wants to stop sale of landmark cinemasTORONTO -- The Canadian partner to a recent deal for Live Nation's North American theaters has gone to court to stop the sale of two landmark Toronto theaters to rival stage producer Mirvish Prods.
Toronto-based Dancap Prods. launched the action in the Ontario Superior Court of Justice to prevent New York-based Key Brand Entertainment from selling the Panasonic and Canon theaters.
Dancap said it was part of a deal in January with Key Brand to buy eight Live Nation theaters, including the Panasonic and Canon that Dancap was contracted to manage and schedule shows.
Dancap, which began producing musical theater in Toronto a year ago, alleges Key Brand then turned around and conducted secret negotiations to sell the theaters to Mirvish in breach of its prior agreement.
Key Brand CEO John Gore said that Dancap's legal claim is "completely without merit" as there is nothing in Key Brand's agreement with Dancap to restrict a sale of the Canon and Panasonic theaters to Mirvish, Toronto's largest stage producer.
Key Brand and Mirvish agreed not to close their deal for the Canon and Panasonic until June 6 to allow the Ontario court to hear Dancap's motion for an injunction.
David Mirvish, CEO of Mirvish Prods., said at a news conference at Toronto's Canon Theatre that he had a deal with Key Brand to buy the two Toronto theaters.
Mirvish said he was exercising an option to buy the Canon and the Panasonic as part of a 15-year lease deal with SFX Entertainment, the predecessor to Live Nation.
Mirvish did not disclose the terms of his deal with Key Brand.