West Face Capital Continues to Defend Against Meritless Callidus / Catalyst Lawsuits

TORONTO, Feb. 1, 2017 /PRNewswire/ - West Face Capital Inc. today issued the following statement following the procedural ruling today by the Ontario Court of Appeal in the lawsuit by Callidus Capital Corporation and The Catalyst Capital Group Inc. for alleged defamation.

West Face notes that this appeal decision concerns only a motion about the form and content of the plaintiff's pleadings at the very outset of this case, and does not concern the merits of allegations by Callidus and Catalyst, let alone the propriety of their business practices or public disclosures. 

"While West Face is disappointed by the decision of the Court of Appeal in this procedural matter, we respect the Court's decision and are considering our options regarding an appeal," said Greg Boland, Chief Executive Officer.  "West Face believes that the underlying claims made by Callidus and Catalyst are without merit and will continue to defend them vigorously.  We also look forward eventually to proceeding to discovery in this case, where we will test Catalyst's allegations that West Face's research into Callidus was inaccurate.  West Face continues to deny these allegations."

This most recent decision is entirely unrelated to Justice Newbould's decision from August 2016 when he dismissed in its entirety Catalyst's claims regarding Brandon Moyse and the WIND transaction.  As a part of that decision, Justice Newbould concluded that the Catalyst witnesses – including in particular CEO Newton Glassman – lacked reliability and credibility.  In his cost endorsement, Justice Newbould further noted that Mr. Glassman "was not able to accept that he lost his chance to acquire Wind by being outsmarted by someone else."  Justice Newbould also found that "[Mr. Glassman] was certainly playing hardball attacking the reputation and honesty of West Face.  However, in spite of the best efforts of Catalyst's very able and skilled lawyers, he utterly failed."  Justice Newbould's decision is under appeal by Catalyst, and the Ontario Court of Appeal has not yet heard arguments on that appeal.

Additional information about these lawsuits is available at www.catalystlitigation.com.  The website provides access to the public court materials from the various lawsuits launched by Catalyst against West Face, including materials filed in court by each of Catalyst and West Face.  West Face invites any interested parties to review the court materials and make their own assessment of these lawsuits, which West Face believes are wholly without merit.

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.

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