IMAX gets needed consents from 9 5/8% noteholders, extends solicitation deadline

By Angela McDaniels

Seattle, April 13 - IMAX Corp. said it has received consents from the holders of a majority of its $160 million outstanding 9 5/8% senior notes due 2010.

The consents allow the company to extend the deadline to file its 10-K annual report for the year ended Dec. 31 until May 31 or, at the company's option, until June 30. The consents also waive any defaults arising due to the company's failure to file the report, according to a company news release.

IMAX also extended the consent solicitation deadline to 12:01 p.m. ET on April 16 from April 12.

The company said it expects the trustee will execute a supplemental indenture to effect the amendments and waiver shortly after the deadline.

Consenting noteholders will receive a fee of $10.00 per $1,000 principal amount for the extension to May 31 (plus applicable cure period). If IMAX extends the deadline to June 30 (plus applicable cure period), consenting noteholders will receive an additional fee of $5.00.

Previously, the Toronto-based motion picture technology company and theater operator said it already had 67% of the necessary consents.

In Friday's news release, however, IMAX said the holder that earlier agreed to grant consent was unable to deliver consents for a $25.1 million portion of its notes.

As previously disclosed, IMAX said the filing of its annual report was delayed beyond the March 31 deadline because management and the audit committee of the board of directors are evaluating certain accounting errors over a six-year period. As a result, the company expects to file restated financial statements for certain periods during those years.

IMAX said previously that it obtained a waiver under its bank credit agreement of the covenant to deliver its audited financial statements until June 30.

The company received a notice of delisting from Nasdaq on April 3 as a result of the delayed filing.

IMAX noted that it cannot predict when it will complete its review and file its 10-K, adding that it does not believe its operations will be impacted by any delays in filing.

Global Bondholder Services Corp. (866 857-2200 or 212 430-3774) is information agent and tabulation agent for the solicitation, and Credit Suisse (contact Liability Management Group at 212 325-7596) is solicitation agent.

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