Catalyst seeks to force Imax's hand on notes


TORONTO -- Imax senior notes holder Catalyst Fund said Wednesday that it has sent the giant-screen exhibitor a formal notice of acceleration to trigger a company default.

Toronto-based Catalyst, which holds about a third of Imax's 9.63% senior notes due in 2010, said it informed the exhibitor in an Oct. 29 letter that it has served notice to have Imax immediately "pay all amounts due on the senior notes, including principal, interest, and any premium due pursuant to the trust indenture."

In reply, Imax reiterated Wednesday that Catalyst has no grounds to default or accelerate senior notes.

Catalyst has attempted seven times before to force Imax to default on its senior notes indenture. In Ontario court action, it has attempted to invalidate a waiver Imax secured in April from most holders of $160 million in senior notes to extend the deadline for filing its annual report.

The legal action comes as Imax continues to clean up its balance sheet amid ongoing probes into its financial books by the U.S. Securities and Exchange Commission and the Ontario Securities Commission.