TORONTO, Nov. 8, 2017 /CNW/ - West Face Capital discovered today that The Catalyst Capital Group Inc. has commenced a fourth action against West Face. The action was provided to the media even though the claim has not yet been served on West Face. Notably, Catalyst has also sued Dow Jones and Company, the owner of The Wall Street Journal.
West Face and Mr. Boland deny strenuously every allegation made against them in Catalyst's latest claim. Catalyst's allegations are completely devoid of merit, and will be defended vigorously at every turn.
As will become perfectly clear as this matter proceeds, West Face has not shorted the shares of Callidus in more than two years. Moreover, West Face has had no discussions with Anson Group concerning any investment that Anson may have made in Callidus.
West Face prevailed against Catalyst in both of the matters between the parties that have proceeded to hearings or trial. In the first case, Catalyst was criticized severely by the Court for its abusive litigation tactics, and findings of credibility were made against Jim Riley, Catalyst's Chief Operating Officer. In the most recent case, Justice Newbould of the Ontario Superior Court held that Catalyst's claims against West Face were meritless, and dismissed all of them. In doing so, he made findings of credibility against all of Catalyst's principals, namely Newton Glassman, Gabriel De Alba and Mr. Riley. Justice Newbould also issued an order compelling Catalyst to pay to West Face more than $1.2 million in costs, on a substantial indemnity basis, because of Catalyst's regrettable conduct in making unfounded allegations of misconduct against West Face and its current and former employees.
West Face is confident that the claim Catalyst has just commenced against it will suffer a similar fate.
The share price of Callidus Capital Corporation has declined dramatically in the past year because of rapid deteriorations in Callidus's financial performance. Catalyst owns two thirds of Callidus. The third quarter financial results of Callidus are scheduled to be released on Monday, November 14, 2017. The timing of the launch of Catalyst's latest claim against West Face appears to be no coincidence. And its claim against The Wall Street Journal appears intended to stifle public scrutiny and criticism of the business operations and conduct of Catalyst, Callidus and their principals.
About West Face Capital Inc.
West Face Capital Inc. is one of Canada's leading alternative investment managers combining control-through-distressed, high-yield, negotiated finance, proactive equity, and private equity activities. West Face's capabilities are underpinned by a seasoned multi-disciplinary investment team, proprietary origination channels, deep sector expertise, and the ability to address investment targets in domestic and international markets.
SOURCE West Face Capital Inc.
For further information: Philip Panet, General Counsel & Secretary, West Face Capital Inc., 2 Bloor Street East, Suite 3000, Toronto, Ontario, M4W 1A8, Tel: (647) 724-8900