Montreal: Cinar Corp. has signed an interim agreement with two Nassau-based investment firms which allows the Montreal-based production company to assess its investments in a related third-party company, Globe-X Canadiana.

The right to assess the investment, described as ‘unauthorized’ by Cinar’s board and initially valued at us$122 million ($178 million), does not affect any of the other issues between Cinar and Nassau-based Globe-X Management, including the repayment schedule which remains outstanding.

Cinar earlier announced it had retrieved us$46 million ($67 million) of the so-called unauthorized investment, leaving us$76 million ($111 million) in ‘commercial paper’ (corporate bonds or debentures with fixed rates and due dates) held by Globe-X and invested in its affiliate, Globe-X Canadiana.

The negotiations with Globe-X broke off two weeks ago, provoking Cinar to take legal action in the Bahamian courts. Dealings with Globe-X took a turn for the better last week after the head of Cinar’s new management committee, ceo Barry Usher, flew to Nassau for private court-supervised negotiations.

During the assessment period, Cinar says it has suspended its legal suit against the investment firms.

Peter Moss, president of Cinar Entertainment, told Playback the company is in close contact with its Canadian and u.s. broadcaster clients and is guaranteeing delivery on its current production slate.

Louise Sansregret, vp investor and public relations, says Cinar’s management committee still has to report on the outstanding tax-credit issue, the subject of an ongoing rcmp investigation, as well as restate several years of financial statements.

Sansregret says officials with the Ontario Securities Commission and nasdaq have not threatened to de-list Cinar. She says the company is actively cooperating with, and reporting to, the security investigators.

Full disclosure of the terms of the us$76 million investment, and other reports by the management committee could lead to a resumption of trading on both the tse and nasdaq, although word on the street has it that may still be several weeks away. Cinar trading was suspended on both exchanges March 8.