Cinar has successfully resolved a couple of disputes, avoiding compromise of the company’s standing prior to its proposed sale.

Spanish animation company BRB International had launched proceedings against the Montreal family entertainment company in August 2000, alleging Cinar was in breach of a letter of intent it had signed in November 1998 to purchase all of BRB’s shares for $78 million. Cinar recently settled out of court for the relatively low sum of $450,000, preventing a date in Quebec Superior Court.

Meanwhile, an arbitration panel found in favor of Cinar against ousted cofounders Micheline Charest and Ronald Weinberg, deciding that 840,000 options the pair were looking to exercise in fact expired nearly four years ago. Approximately US$1.2 million that was to be escrowed pending resolution of the dispute will now be paid to shareholders, who, under the arrangement, will now receive US$3.60 per share rather than US$3.57.

On Feb. 17, shareholders of Cinar, which produces the animated series Caillou and Arthur, are slated to vote on the company’s proposed acquisition by an investor group including Nelvana cofounder Michael Hirsh, former Nelvana executive Toper Taylor and TD Capital Canadian Private Equity Partners. Transaction details are to be mailed to registered shareholders this month.

-www.cinar.com