TORONTO, Jan. 31,
2025 /CNW/ - Chemtrade Logistics Income Fund (TSX:
CHE.UN) announced that the Court of Appeal of Alberta today released its decision in
Superior Plus Corp. v. Chemtrade Electrochem Inc. The Court of
Appeal ruled against Chemtrade.
At trial, the Court of King's Bench of Alberta had ruled in favour of Chemtrade. The
lawsuit involved the failed attempt by Superior to acquire Canexus
Corporation, prior to Chemtrade's 2017 acquisition of Canexus. The
trial court had ruled that pursuant to the Arrangement Agreement
between Superior and Canexus, Superior had to pay Canexus (now
Chemtrade Electrochem Inc.) a $25
million reverse termination fee because the transaction did
not close due to a failure to obtain Canadian and U.S. competition
and anti-trust regulatory approvals. Superior appealed this ruling
and prevailed at the Court of Appeal. Since the initial decision
was subject to appeal, Chemtrade did not record a gain on the
successful outcome of the lawsuit and the Court of Appeal ruling
will have no impact on Chemtrade's financial results. Chemtrade has
60 days from January 31, 2025 to
commence an application for leave to appeal to the Supreme Court of
Canada.
"This ruling is extremely disappointing for us", said
Scott Rook, President and CEO of
Chemtrade. "We are consulting our legal counsel and are considering
our options including commencing an application for leave to appeal
and continuing our claims against Canexus's legal advisors on the
transaction, and their insurers. We will continue to pursue all
avenues of recovery available to us."
About Chemtrade
Chemtrade operates a diversified business providing industrial
chemicals and services to customers in North America and around the world. Chemtrade
is one of North America's largest
suppliers of sulphuric acid, spent acid processing services,
inorganic coagulants for water treatment, sodium chlorate, sodium
nitrite and sodium hydrosulphite. Chemtrade is a leading regional
supplier of sulphur, chlor-alkali products, and zinc oxide.
Additionally, Chemtrade provides industrial services such as
processing by-products and waste streams.
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute
forward-looking statements within the meaning of certain securities
laws, including the Securities Act (Ontario). Forward-looking statements can be
generally identified by the use of words such as "anticipate",
"continue", "estimate", "expect", "expected", "intend", "may",
"will", "project", "plan", "should", "believe" and similar
expressions. Specifically, forward-looking statements in this news
release include statements respecting certain future expectations
about: whether Chemtrade will apply for leave to appeal and whether
that will be granted; and whether the claims against Canexus's
legal advisors and insurers will be pursued. Forward-looking
statements in this news release describe the expectations of the
Fund and its subsidiaries as of the date hereof. These statements
are based on assumptions and involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements for a variety of reasons, including
without limitation the risks and uncertainties detailed under the
"RISK FACTORS" section of the Fund's latest Annual Information Form
and the "RISKS AND UNCERTAINTIES" section of the Fund's most recent
Management's Discussion & Analysis.
Although the Fund believes the expectations reflected in these
forward-looking statements and the assumptions upon which they are
based are reasonable, no assurance can be given that actual results
will be consistent with such forward-looking statements, and they
should not be unduly relied upon.
Except as required by law, the Fund does not undertake to update
or revise any forward-looking statements, whether as a result of
new information, future events or for any other reason. The
forward-looking statements contained herein are expressly qualified
in their entirety by this cautionary statement.
SOURCE Chemtrade Logistics Income Fund
