Birch Mountain Shareholders for Justice

Open letter to Southern Investigative Reporting Foundation

Dear SIRF,

Thank you for your article, "The Paper World of Brookfield Asset Management." 

As you stated, "Few companies bear a structure as complex as Brookfield’s: Analyzing the company’s organizational tree and its web of entities, stakes, partnerships and operating companies is to behold the work of gifted accountants and lawyers. Similarly, Brookfield’s financial filings are mind-boggling in their complexity." (highlight added).

While important to investors, there is more than just the numbers to consider, as in this article, "A perfect predator."

What may be good for BAM shareholders may not be so good for the shareholders on the other side of their transactions. Perhaps we will see more from you in regards to the what Brookfield leaves in the wake of their progress.

Shareholders for Justice

Teamwork

If anyone has the time and resources and wants to help research and gather evidence to help the lawsuit here are areas of interest we are currently working on:

Hammerstone Corp. Acquires Voting Rights on Whitemud Resources Debentures

Brookfield Special Situations Partners Ltd. Acquires 891,843 Common Shares of Insignia Energy

Brookfield/Timerlands/Pattison/Canfor/Western Forest Products

General Growth Properties

Atlantis Resort

What is helpful?

Just think Who, What, When, Where, Why, How. For instance:

Who are the main players, who are the decision makers?

What is at stake, what are the assets, value?

When did it start, when did it change?

Where are the players, assets, money located?

Why did events, contracts, connections, deals happen? Why did it change?

How did it happen – the sequence of events? How are they related? How much money?

When in doubt – follow the money!

If you are considering investing your time, energy, and resources to help shareholders, contact us through birchmountain@hushmail.com to discuss the areas of interest and where to submit your findings. Please DO NOT send evidence to that email.

2 Deaths in 9 Months at the Hammerstone Quarry

Our sincerest condolences

to the families.

 

Do the deaths call into question the ability of Brookfield to effectively manage a limestone quarry safely?  http://www.hammerstonecorp.com/our-commitment/health-safety

December 2012: "A 32-year-old man was killed in a workplace accident at a limestone quarry 75 kilometers north of Fort McMurray, the second fatality to occur at the location in nine months." Source: http://www.fortmcmurraytoday.com/2012/12/10/man-killed-in-quarry-accident

April 2012:  “A 29-year-old man has been killed while working at a gravel quarry north of Fort McMurray, Alberta. ‘We are not providing any details in terms of the accident, but I can confirm that it did happen at our Hammerstone site,’ said Terry Owens, president of Hammerstone Corporation.” Source: http://www.journalofcommerce.com/article/id49969/--worker-killed-at-gravel-quarry-north-of-fort-mcmurray-alberta

Terry Owen is the CEO of Hammerstone.  According to the Norton Rose web site (formerly MacLeod Dixon), Terry Owen is a lawyer who practiced corporate and securities law.  Does Brookfield recognize this as adequate qualifications to run a quarry? Just how did Mr. Owen get the top job at Hammerstone? 

Background:  "Terry began his career with Macleod Dixon in 1985 and became a partner of the firm in 1993. While at the firm, Terry practised corporate and securities law.  He joined Hammerstone in 2009 as chairman, president and chief executive officer.   Hammerstone was formed to purchase an active limestone mining operation in the Athabasca oil sands area of Alberta with over 1 billion tonnes of limestone reserves. Future plans include expanded quarry operations together with lime production facilities." Source:http://www.nortonrose.com/people/58512/Terry-Owen

Brookfield, through its subsidiary Tricap, “acquired” (through receivership) Birch Mountain’s quarry assets valued at $1.6B for an outlay of less than $50M…tragically leaving Birch stakeholders with nothing. 

Before Hammerstone, Mr. Owen was the President of Trimac Transportation Services Inc., the leading provider of bulk trucking and logistics services in North America. Source: http://www.brookfield.com/content/2009_press_releases/tricap_announces_launch_of_hammerstone_corporation-28695.html

Coincidentally, Trimac  was awarded a contract to haul a “significant volume of limestone aggregate on behalf of Hammerstone Corporation.”  Source: http://www.prnewswire.com/news-releases/trimac-announces-new-business-award-with-hammerstone-corporation-155976835.html

What can we garner from this information? Just what sort of expertise does Brookfield have other than a plethora of securities and receivership lawyers to run the assets they are gobbling up? Just how does a securities lawyer get the top job at Hammerstone?

 

 

BHMNF trading on the PinkOTC

We just want to clarify that any shares purchased OUTSIDE of the class period (1 April 2005 through 5 November 2008) are not eligible to be included in any recovery as a part of the class action lawsuit should there be one.

Why and how the BHMNF shares are trading is a mystery considering BHMNF is a shell company. Perhaps the market makers need some lunch money so they are trading between themselves. Money only makes a profit when it is moving.

Here are a list of the market makers for BHMNF as per Issuer Services from the PinkOTC as of February 2010.

Name	Location
Natixis Bleichroeder, Inc	New York, NY
Automated Trading Desk Fincl Svcs	Mt. Pleasant, SC
Domestic Securities, Inc.	Edison, NJ
E*Trade Capital Markets, LLC	Chicago, IL
Hudson Securities, Inc	OTC Trading - Jersey City , NJ
LaBranche Financial Services, Inc.	Trading Dept. NY
Maxim Group LLC	Red Bank, NJ
Knight Equity Markets, LP	Jersey City, NJ

 

Supreme Court Decision

MOTION FOR EXTENSION OF TIME AND APPLICATION FOR LEAVE TO APPEAL

Wanda Bond v. Brookfield Asset Management Inc. et al. (Ont.) (Civil) (By Leave) (34885)

(The motion for an extension of time to serve and file the application for leave to appeal is dismissed with costs.  In any event, had such motion been granted, the application for leave to appeal would have been dismissed with costs.)

SUPREME COURT OF CANADA -- JUDGMENTS TO BE RENDERED IN LEAVE APPLICATIONS on Thursday

OTTAWA, 2012-11-13.  THE  SUPREME  COURT  OF  CANADA  ANNOUNCED  TODAY  THAT  JUDGMENT  IN  THE  FOLLOWING  APPLICATIONS  FOR  LEAVE  TO  APPEAL  WILL  BE  DELIVERED  AT  9:45  A.M.  EST  ON  THURSDAY,  NOVEMBER  15,  2012.  THIS  LIST  IS  SUBJECT  TO  CHANGE.

Wanda Bond v. Brookfield Asset Management Inc.,

Brookfield Special Situations Partners Ltd., 1439442 Alberta Ltd.

(Ont.) (Civil) (By Leave) Courts — Jurisdiction — Conflict of laws — Whether superior courts of one province can entertain an oppression action in respect of a corporation incorporated under the laws of a different province? Birch Mountain Resources Limited was incorporated under the Alberta Business Corporations Act, R.S.A. 2000, c. B‑9. It was based in Calgary and owned and operated a mine in northern Alberta. The applicant owned some of its common shares, which were traded on several stock exchanges including the Toronto Stock Exchange. Tricap Partners Ltd. and its parent are Ontario corporations. Tricap advanced a $31.5 million loan to Birch Mountain secured by a debenture and loan agreement governed by Alberta law. Birch Mountain defaulted. Tricap commenced enforcement proceedings and on January 8, 2009, the Alberta Court of Queens Bench issued a vesting order transferring Birch Mountain's assets to 1439442 Alberta Ltd., an Alberta corporation based in Calgary and a private wholly‑owned subsidiary of Tricap. The applicant commenced a class proceeding in Ontario Superior Court, seeking a declaration under the Ontario Business Corporations Act, R.S.O. 1990, c. B.16, that the respondents acted oppressively, unfairly, prejudicially and with disregard to Birch Mountain’s common shareholders. She also seeks damages for Birch Mountain’s common shareholders for losses in share value incurred between April 1, 2005 and November 5, 2008. The respondent brought a motion to stay the proceedings and argued that Ontario was forum non conveniens and the Ontario Superior Court did not have jurisdiction simpliciter.

Creeping Control

What is creeping control and what does it look like?

One example can be found in Ackman's presentation about General Growth Properties outlining how Brookfield is gaining control over GGP. Here's a link to the presentation (copy and paste if necessary)

http://www.businessinsider.com/ackmans-value-investing-congress-presentation-2012-10?op=1

Or could other examples be found in Brookfield's global presence maps? (be sure to look through all the tabs):

http://www.brookfield.com/content/property-30182.html

Or maybe it looks like this:

"Berkshire’s HomeServices of America Inc. unit will be the majority owner of the venture to manage a U.S. residential real- estate affiliate network, according to a statement on the new company’s website." source: http://www.businessweek.com/news/2012-10-31/berkshire-extends-housing-bet-with-brookfield-venture

Majority owner - for now? !!! Ya think old man Buffet is on his game or about to lose it?

Duh!

Don't know why it took us so long to make it easy for you to share our blog but the wait is over.

Use the buttons below the posts to share our message with your social community.

I guess you have noticed we did not get around to the "new look" for the blog. This blog will have to suffice for now. If you have questions or difficulty navigating our blog, please send us an email at BirchMountain@hushmail.com.

We're expecting a decision from the Supreme Court on whether they believe our leave application is of national importance. We certainly believe we have made a compelling case for their review.

Yes. We have many quiet spells. It does not mean we are sitting back with our feet up waiting for the wheels of justice to turn. Quiet doesn't mean still.

Also, if you haven't visited the WIKI page about the asset be sure to go there. You know - anyone can contribute to WIKI, so if you have facts backed by solid references, by all means, contribute:

Hammerstone Project - WIKI

and

Brookfield Asset Management

 

Progress

Where are we in the process of appealing to the Supreme Court of Canada?

SCC Case Information

Docket

34885

Wanda Bond v. Brookfield Asset Management Inc., et al.

(Ontario) (Civil) (By Leave)

Date	Proceeding	Filed By (if applicable)
2012-10-01	All materials on application for leave submitted to the Judges, F Mo Ka
2012-10-01	Submission of motion to extend time to file and/ or serve the leave application, F Mo Ka

Who is F, Mo, Ka? We believe . . .

F = Morris Fish

Mo = Michael J. Moldaver

Ka = Andromache Karakatsanis

 

We've appealed to the Supreme Court of Canada

We know we promised a blog makeover and that may still happen.

However, in the meantime, we've been a little busy implementing one of three legal pursuits to forward our case against Brookfield. Here's one:

source: http://www.scc-csc.gc.ca/case-dossier/cms-sgd/dock-regi-eng.aspx?cas=34885

The Supreme Court of Canada goes on holiday for the month of July. We don't anticipate we will hear anything until near the end of August on this one.

Just to reiterate:

To help quantify damages. Courts always want to know how much ($$$) damage was done.

Champion Stakeholders, LLC has made vigorous attempts (snail mail letter, emails, blog site, forums) to request that any shareholder holding Birch Mountain shares during the class period between April 1, 2005  through November 5, 2008, send us their name, physical address, phone contact, and share count information to birchmountain@hushmail.com.

If you have submitted your information - THANK YOU.

If you haven't sent your information - why not?

If any of your information has changed since you first contacted us - please provide an update.

How to contact us: Send an email to birchmountain@hushmail.com

IF you have contacted us through birchmountain@husmail.com and have not heard back, please accept our apologies, we are busy putting in place important legal pursuits and making every effort to catch up.