TORONTO, Sept. 19, 2018 /CNW/ - Echelon Financial Holdings Inc. ("the Company") (TSX: EFH), today reported that it will vigorously defend legal proceedings commenced against the Company in Denmark.
On September 17, 2018 New Nordic Advisors Limited (NNAL) submitted a Statement of Claim to the Danish Institute of Arbitration naming the Company as a defendant in a proceeding related to the sale of the Company's European Operations to New Nordic Odin Guernsey Limited (NNGL).
On March 7, 2017, after extensive negotiations and due diligence by NNGL and its advisors, the Company completed the sale of Qudos Insurance Holding Company to NNGL. As previously disclosed, the Company was advised in August 2018 that NNAL intended to commence legal proceedings against the Company to recover damages.
In a press release issued on August 8, 2018, the Company denied all allegations made against it, and stated that advice had been sought from legal counsel.
The Company continues to deny all allegations made against it by NNAL and states that there is no merit to NNAL's claim for €45.8 million in damages. The Company believes that the litigation is an attempt by NNAL to access funds from the Company by means of a settlement to inject into NNAL's financially distressed insurance operations.
The Company will not make further public comment on the litigation while the matter remains unresolved.
About Echelon Insurance
Founded in 1998, Echelon operates in the property and casualty insurance industry in Canada, providing personal and commercial lines insurance exclusively through the broker channel. The Company operates and distributes insurance products through Echelon Insurance and The Insurance Company of Prince Edward Island. It trades on the Toronto Stock Exchange under the symbol EFH. For more information, please visit echeloninsurance.ca.
SOURCE Echelon Financial Holdings Inc.
For further information: COMPANY CONTACT INFORMATION: Jennifer Kew, Investor Relations, 905-214-7880, [email protected]