Senior officials, including V Chandrasekaran chairman of India's Pentamedia have rushed to the US to renegotiate their deal with Film Roman on a stock and cash basis (Screendaily, Oct 24, 2001).
Film Roman has set April 28 as the deadline for repair of the alleged breach of contract by Pentamedia Graphics that put the two companies deal in turnaround.
Earlier Film Roman said that it had formally notified Pentamedia
that the latter was in material breach of the stock purchase agreement signed on Jan 31. That deal envisaged Pentamedia buying 60% of the newly issued common stock of Film Roman for $15m. At Pentamedia's request, the payment schedule was extended from the original Mar 26 to April 13. But Pentamedia failed to make payment by that new date.
Under the terms of the existing agreement between the two companies, Pentamedia has 15 days to heal the breach before Film Roman can terminate the agreement and initiate arbitration proceedings.