West Street Capital Corporation

West Street Capital Corporation

October 14, 2005 16:25 ET

West Street Capital Corporation: Settlement of Outstanding Litigation

TORONTO, ONTARIO--(CCNMatthews - Oct. 14, 2005) - West Street (TSX VENTURE:WSC)(TSX VENTURE:WSC.PR.A) (formerly Consolidated Enfield Corporation) reports that its agreement to settle outstanding litigation with West Street shareholder, Automodular Corporation, (formerly Algonquin Mercantile Corporation), has been approved by the Superior Court of Justice. The litigation was commenced in 1995 and concerned alleged oppression in the management of the business of Enfield. In the litigation, Automodular was seeking damages from the defendants, including Hees International Bancorp Inc. (a predecessor of Brascan Corporation) for itself in the amount of $35 million and for West Street in the amount of approximately $225 million. Under the settlement, West Street is to receive a payment of $3 million from Brascan Corporation. Automodular is to receive a payment from Brascan of $11 million. There has been no admission of liability on the part of any party. The purpose of the settlement is to eliminate the expense and opportunity cost for all parties associated with continued litigation.

This news release contains forward-looking statements concerning the Company's business and operations. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and the Company's actual results could differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Information Form for a description of the major risk factors.

Contact Information

  • West Street Capital Corporation
    Brian D. Lawson
    President and Chief Executive Officer
    (416) 359-8625