Transcontinental fires back over sale of Atlantic Canada media assets
THE CANADIAN PRESS
Published Thursday, April 11, 2019 3:27PM ADT
HALIFAX -- Montreal-based Transcontinental Inc. is defending its handling of the sale of its East Coast media assets to SaltWire Network, and says it's considering a counter-suit against Atlantic Canada's largest media company.
Transcontinental says the 2017 sale to SaltWire was "conducted based on fair, accurate and timely information."
SaltWire, which owns 35 newspapers in Atlantic Canada, has launched a lawsuit accusing Transcontinental of overstating its printing and distribution business and misrepresenting revenue streams of the acquired assets.
The lawsuit filed Wednesday in Nova Scotia Supreme Court claims Transcontinental substantially overstated revenues, hid material facts about the condition of the assets and was not forthcoming about a number of questionable business practices.
But Transcontinental said Thursday it's a reputable organization with the highest ethical practices, and added it is considering a counter-suit because SaltWire has "failed to fulfil its payment obligations and is in breach of contract."
SaltWire chief operating officer Ian Scott said Thursday the company "has, in all instances, adhered to the purchase contract with Transcontinental."
He said the company had been unsuccessful in its attempts to reach a settlement with Transcontinental that avoids the courts.
SaltWire is seeking compensation for general and special damages, as well as aggravated and punitive damages, interest and costs.
Companies in this story: (TSX:TCL.A)