NR - Look provides update on litigation against ce Look Communications provides update on litigation against certain former officers and directors
Look Communications Inc. LOK.H
10/1/2012 8:37:00 AM
Look Communications provides update on litigation against certain former officers and directors
TORONTO, Oct. 1, 2012 /CNW/ - Look Communications Inc. ("Look" or the "Corporation") (NEX: LOK.H and LOK.K) today announced that, on Friday, September 28, 2012, the Ontario Superior Court of Justice dismissed applications and motions made by certain of Look's former officers and directors and personal service companies (the Applicants) for interim advances to fund their costs of defending claims made against them by Look. As previously disclosed, on July 6, 2011, Look issued a Statement of Claim against certain former officers and directors of Look in connection with the payment of approximately $20 million of "restructuring awards" paid in 2009, of which approximately $15.7 million was paid to the former officers and directors named in the Statement of Claim from the net proceeds of approximately $64 million realized by the Corporation on the sale of its spectrum licence in 2009.
The court denied the advances sought by Messrs. McGoey, Cytrymbaum, Redman, Smith, Colbran and the personal service companies, but held that Mr Dolgonos (but not his personal service company) is entitled to advances for his defence of the claims made against him. The reasons state in part: "For the above reasons, therefore, I am of the view that, based on the evidence presented, Look has established a strong prima facie case that the individual Applicants, excluding Dolgonos, acted mala fides, in their own self interests and not with a view to the interests of Look in respect of the Board's approval of the equity cancellation payments based on a value of $0.40 a share and in relation to the payment of retainers by Look to lawyers acting for the Applicants personally. Accordingly, Look has met its onus. I am not prepared to approve interim advancement to the individual Applicants (except Dolgonos) of their legal fees and expenses in respect of the Action or the CBCA Motion pursuant to s. 124(4) of the CBCA."
The court emphasized that the findings made in the applications were not binding on the trial judge. The Corporation intends to seek reimbursement of its costs of responding to the applications and motions and to move forward with its claims. The Applicants have 30 days within which to serve Notices of Appeal from the September 28, 2012 decision.
About Look Communications Inc.
Look's shares are listed on the NEX under the symbols "LOK.H" for Multiple Voting Shares and "LOK.K" for Subordinate Voting Shares. Look's website may be found at www.look.ca.
The corporate information contained in this release includes forward-looking statements regarding future events and the future performance of Look that involve risks and uncertainties that could cause actual results to differ materially. Assumptions used in the preparation of such information, although considered reasonable by Look at the time of preparation, may prove to be incorrect. The actual results achieved may vary from the information provided herein and the variations may be material. Consequently, there is no representation by Look that actual results achieved will be the same in whole or in part as those forecast.
Neither the NEX nor its Regulation Services Provider (as that term is defined in the policies of the NEX) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Look Communications Inc.
Grant McCutcheon
Chief Executive Officer and Director
(416) 613-8222