Imax says it has not defaulted on debt

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TORONTO -- Giant screen exhibitor Imax Corp. on Thursday reiterated that it has not defaulted on its debt as it prepares for a legal showdown with rebel Canadian shareholder Catalyst Fund LLP.

Toronto-based Imax said it received on Dec. 21 a summons and complaint from the U.S. Bank National Assn., the trustee of $160 million of 9 5/8% senior notes due Dec. 1, 2010.

As part of that request, the trustee asked Imax to confirm that Catalyst "has no basis for its legal claims against Imax under the Indenture," which the large format exhibitor did, Imax said.

The move follows Toronto-based Catalyst, which holds senior notes and stock in Imax, in September asking the Ontario Superior Court of Justice to rule that Imax is in default under an indenture that governs the senior notes.

Catalyst aims to invalidate a waiver Imax secured in April 2007 from most holders of the $160 million in senior notes to extend an earlier deadline for filing its annual report.

Imax also said Thursday that it has sold one of its self-owned and operated large format screens in Providence, Rhode Island to National Amusements, the fifth-largest U.S. cinema chain.

Terms of the deal for the Feinstein Imax theater were not disclosed.
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