Counsel Corporation
TSX : CXS

Counsel Corporation

October 04, 2005 08:52 ET

Counsel Corporation Receives Notice Of Application

TORONTO, ONTARIO--(CCNMatthews - Oct. 4, 2005) - Counsel Corporation (TSX:CXS) has received notice of an application made by Amaranth LLC seeking an Ontario Court order requiring Counsel to purchase 16,019,155 common shares of Counsel owned by Amaranth at fair value. The application also requests interim relief to require Counsel to place the equivalent of US$16,000,000 in a segregated trust account, pending determination of the Application. The grounds for the application are that the sale by Counsel's subsidiary Acceris of certain of its assets and the sale by Counsel of certain real estate properties constituted the sale of substantially all of the assets of Counsel, requiring Counsel shareholder approval. Amaranth alleges that the failure to obtain such shareholder approval constitutes an act of oppression.

Counsel Corporation believes the Amaranth application is opportunistic and without merit and intends to defend the Application vigorously.

About Counsel Corporation

Counsel Corporation is a diversified company with operations in three specific sectors: communications, real estate and long-term care. Counsel's communications platform is focused on its existing communications investment, C2 Global Technologies Inc. (OTCBB:COBT). Counsel's real estate platform has a focused strategy of investing in and developing income producing commercial properties, primarily retail shopping centres. Counsel's long-term care business consists of the operations of seven nursing homes in Ontario. For further information, please visit Counsel's website at www.counselcorp.com.

Forward-Looking Statements

The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts, which address Counsel Corporation's expectations, should be considered as forward-looking statements. Such statements are based on knowledge of the environment in which they currently operate, but because of the factors herein listed, as well as other factors beyond their control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, obtaining necessary approvals and other risks detailed from time to time in the Company's securities and other regulatory filings.

Contact Information

  • Counsel Corporation
    Kelly Murumets
    Executive Vice President
    (416) 866-3000