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Dancap sues to block sale of Toronto theatres to Mirvish

07.05.2008 20:02 Arts - Source: cbc.ca

Toronto theatre group Dancap Productions is suing Key Brand Entertainment and Ed Mirvish Enterprises, alleging they engaged in secret negotiations that led to the sale of two Toronto theatres.

Dancap is seeking an injunction that would block the sale of the Canon and Panasonic theatres in Toronto to Mirvish.

In a statement released Wednesday, Dancap alleges allowing Mirvish to control the theatres would allow its rival to ensure a dominant position in bringing Broadway productions to Toronto.

All parties in the case met in Ontario Superior Court in Toronto on Tuesday. Mirvish and Key Brand agreed not to close their deal on the theatres until June 6 to allow a hearing into the suit.

Dancap signed a deal with Key Brand of the U.S. earlier this year that smoothed the way for Key Brand to acquire the assets of Live Nation Inc., including the two Toronto theatres.

Dancap impresario Aubrey Dan got a place on the Key Brand board and the Toronto company was to manage Key Brand's Canadian assets, including the two theatres.

In its statement of claim, Dancap accuses Key Brand of beginning secret negotiations to sell the Canon and Panasonic Theatres to Mirvish.

Although he was a board member, Dan was not told of the agreement with Mirvish until after the deal was finalized in April 2008.

"Our primary reasons for entering into an agreement with and investing in Key Brand were to manage the Canadian assets, including the right to control the scheduling of shows at the Canon and Panasonic theatres," Dan said in the statement.

Key Brand is in breach of its contract with Dancap, because the sale of theatres means there would be nothing in Canada for Dancap to manage, the suit alleges.

"We would never have invested had they disclosed a plan to sell these facilities and enter into agreements with Mirvish," Dan said.

Key Brand Entertainment, a new theatre firm created last year, is owned and controlled by British producer John Gore and led by U.S.-based entertainment producer Thomas B. McGrath.

Dancap, a theatre group presenting shows such as My Fair Lady and Jersey Boys, signed a deal two weeks ago to ensure access to the Toronto Centre for the Performing Arts in north Toronto for its future shows.

However, the Canon and Panasonic theatres are in the downtown core.

Mirvish is bringing a slate of musicals to Toronto next season, including Broadway hits such as Spring Awakening and The Color Purple.

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Dancap signs deal for access to large Toronto theatre Mirvish goes with musicals for 2008-2009 season Toronto theatres part of deal for Live Nation holdings

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