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Cinar delays financial filing
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April 20, 2000: 4:40 p.m. ET
Kids' TV programmer will miss financial filing deadline; stock halted on Nasdaq
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NEW YORK (CNNfn) - Cinar Corp., the troubled Canadian creator of popular children's TV program "Arthur," announced Thursday that it will not be able to file quarterly financial data or its annual report before federally imposed deadlines, and would likely restate its fiscal results for 1997, 1998 and most of 1999.
Montreal-based Cinar said it had not met the April 18 regulatory deadline for reporting its 1999 results, and would not meet the April 29 deadline for reporting its first-quarter 2000 results.
 As a result, on Wednesday, Quebec's Securities Commission said it has prohibited trading in the stock on the Toronto Stock Exchange or Nasdaq, where its shares are listed.
Cinar hopes, but would not guarantee, that it will file audited financial statements on or before June 30, 2000.
"We are keenly aware that our shareholders are anxious to receive accurate financial information on the company," said Barrie Usher, president and chief executive of Cinar. "We have taken special measures to produce statements as quickly as possible."
Probed for tax fraud
The company, already under investigation by Canadian officials for tax credit fraud and financial accounting irregularities, said its financial reports for the full year 1997, 1998 and the first three quarters of 1999, would have to be restated for "reasons relating to tax incentives and the disclosure of related party transactions."
Cinar's troubles began in October when several Quebec writers claimed the company was abusing their rights and stealing intellectual property by attaching other people's names to their work.
Allegations have been made that Cinar also replaced U.S. authors' names with Canadian ones on program scripts to obtain generous Canadian and Quebec government tax credits.
Cinar's woes deepened in March when Micheline Charest resigned as chairman and co-chief executive, while her husband Ronald Weinberg left his posts of president and co-CEO, and the chief financial officer was fired after Cinar disclosed that C$122 million was invested in bonds without its board's knowledge.
On April 6, Royal Canadian Mounted Police conducted a search of Quebec's government film funding agency in connection with the Cinar Investigation, and took away four boxes of documents. No charges have been brought in the investigation.
 The company, which has a popular roster of programs including "Zoboomafoo," and "Whimzie's House," said it will release reports on its financial filing status, by way of news releases, every 15 days.
Trading in Cinar (CINR: Research, Estimates) shares has been halted in Toronto and on Nasdaq since March 9 as securities officials seek more information on financial irregularities. 
--From staff and wire reports.
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