DARTMOUTH, N.S. – Radio station owner Newfoundland Capital Corporation said today that it has reached a settlement with Halterm Limited over a recent legal dispute.
Back in 1997, NCC sold its interests in a container terminal to Halterm and the Halterm Income Fund and, “the company indemnified Halterm for any material increases in the base rental fee payable by Halterm to the Halifax Port Corporation (now the Halifax Port Authority) for the first ten years of the first lease renewal term which commenced January 1, 2001,” says a press release.
The indemnity was only applicable to the extent, if any, that such increases in the base rental fee result in a reduction in distributions to fund unitholders to a level below that anticipated in the forecast included in the prospectus for the initial public offering of trust units of the fund.
On February 25, 2005 Halterm filed a statement of claim pursuing $1.8 million with respect to this indemnity for 2003 and $2.3 million for 2004.
"We feel strongly about our position in the case, however, continuing to defend this position would take several years and distract the company from its core corporate duties and responsibilities," said Rob Steele, president and CEO. "In consideration of the complexities of this case and the anticipated length of the legal campaign, the company has reached a settlement with Halterm for $3.5 million for all past, present and future claims."
NCC currently holds 1,118,400 units of the fund, which is approximately 13.9% of the total units outstanding.
Newcap holds 69 radio station licenses across the country.
