MPL Communications Inc.: Update on Court-Ordered Payment in Minority Shareholder Action
March 03 2010 - 11:00PM
Marketwired
MPL Communications Inc. (TSX VENTURE: MPZ) announces that its major
shareholder Marpep Publishing Limited has proffered a combination
of as much as $1 million in cash plus stock and debt to MPL
totalling over $2.6 million including accrued interest to settle an
order by an Alberta court given in early 2009.The independent
members of the MPL board are considering these proposals.
In an oppression action launched by certain minority
shareholders of MPL, the Alberta court examined management fees
paid by MPL to Marpep from 2001 to 2004. Marpep provided direct
marketing and management services to MPL and is owned by MPL's
President and Chairman, Barrie Martland and Stephen Pepper. The
court determined that $1.96 million of the fees paid from 2001 to
2004 were excessive and must be repaid to MPL, plus interest.
The court said that if the ordered amount was not repaid by
February 18, 2010, then the minority shareholders who brought the
original action could apply to ask the court for further
directions.
Marpep made two alternative proposals to MPL in January to
settle the judgment debt. Neither involves full payment of cash by
Marpep to MPL. Those proposals, plus other alternatives, are
presently being considered by MPL's independent directors.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: MPL Communications Inc. Stephen D. Pepper Chairman
(416) 869-1177 spepper@mplcomm.com
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