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June 2014

How does the preferential James Pattison deal shake-out?

Remember the sequence of events:

5 Nov 2008 Birch Receivership

26 Nov 2008 Hammerstone Corporation created by Brookfield

27 Nov 2008 Sweetheart deal given to James Pattison

What does the deal look like deconstructed? If the asset of Birch Mountain is acquired by Brookfield then Pattison gets 30%. What is 30% of 1.6 billion?

Download Pattison Secret Option Agreement dissected


How does Brookfield Tricap sell something they don't yet own?

 

Here's the sequence:

5 Nov 2008 Birch Mountain forced into receivership.

26 Nov 2008 Alberta 1439442 later to become Hammerstone Corporation was created by Brookfield.

27 Nov 2008 James Pattison receives a sweetheart deal from Alberta 1439442 in exchange for selling his debenture shares to Brookfield.

9 Jan 2008 Brookfield Hammerstone purchases the $1.6 billion dollar asset for less than $50 million.

How can Brookfield create a sweetheart deal with one of their own directors to sell an asset they don't even own?

Download 1 Pattison Option Agreement FINAL


CNW Canadian News Wire Press Release

Lanny K. McDonald named Representative Plaintiff in the Brookfield Class Action alleging Brookfield Director Billionaire James Pattison received a preferential deal

TORONTO, June 5, 2014 /CNW/ - Champion Stakeholders LLC announces an Amended Statement of Claim in the class action against Brookfield Asset Management Inc., Brookfield Special Situations Ltd. and Hammerstone Corporation was filed on the 27 May, 2014, file number 1401-05797, in Calgary in the Court of Queen's Bench of Alberta.

The Amended Statement of Claim appoints Mr. Lanny K. McDonald as the representative plaintiff. Lanny McDonald is a respected NHL player, has won as many awards for his humanitarian efforts as he did for sportsmanship. Mr. McDonald was inducted into the Hockey Hall of Fame in 1992. Mr. McDonald sat on the board of Birch Mountain Resources Ltd, was also a shareholder and creditor of the company.

The amended Statement of Claim alleges that the defendants acted in a manner that was oppressive, unfairly prejudicial to, and unfairly disregarded the interests of the Birch Mountain Resources Ltd. common shareholders.

The assets of a junior public company, Birch Mountain, worth an appraised $1.6 billion dollars by AMEC, dated August 01, 2006 prepared in accordance with National Instrument 43-101 were transferred to a private company, 1439442, for a cash outlay of less than $50 million dollars as stated in the Amended Statement of Claim.

The action is based on the oppression remedy as well as the good faith doctrine and the tort of negligent misrepresentation.

The Amended Statement of Claim alleges that:-

  • Brookfield and Tricap, usurped shareholders rights and debenture holder rights.
  • Brookfield and Tricap contrived a default to put Birch Mountain into receivership.
  • Brookfield director, James Pattison owner of Great Pacific Capital Corp, received a preferential deal as compensation for his unsecured subordinate convertible debenture shares usurping other subordinate convertible debenture shareholders.
  • Brookfield and Tricap via the PwC receiver's report omitted informing the Receivership Court of the value of the asset and therefore were able to acquire the $1.6 billion dollar asset for undervalue.
  • Brookfield and Tricap via the PwC receiver's report omitted informing the receivership court of the Q3 and cash flow break even position of Birch Mountain.

The allegations in the lawsuit have not yet been proven in court.

Plaintiff's counsel believe they will demonstrate the oppressive business tactics of Brookfield and their subsidiaries which resulted in Birch Mountain shareholders from across North America losing all of their investment.

"Families, careers, and retirements were damaged and in some cases destroyed," states Champion Stakeholders, the group of three shareholders who initiated the lawsuit.

For information about the class action lawsuit, including the Amended Statement of Claim, please review the official legal website at: www.brookfieldclassaction.com.

Additional information can be found at http://jimymac.blogs.com/shareholdersforjustice/

SOURCE Champion Stakeholders LLC

For further information:

Contact: birchmountain@hushmail.com


Here's the NEWS !!! Read carefully!! (updated)

Shareholders,

Here is the news!

When you are done reading the article in the Globe and Mail be sure to visit the official legal website to read the new AMENDED Statement of Claim and to register officially.

Even if you have already registered with Champion Stakeholders LLC in the past IT IS NOW NECESSARY TO REGISTER ON THE LEGAL WEBSITE.

To Register go to the official website, look at the top menu bar, and click on "Class Registration" www.brookfieldclassaction.com

OR use the links on the left side under "Important Links"

Canadian hockey hero Lanny McDonald heading shareholder fight

Jeff Gray - LAW REPORTER

The Globe and Mail

Published Wednesday, Jun. 04 2014, 6:39 PM EDT

Last updated Wednesday, Jun. 04 2014, 7:07 PM EDT