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Court Approves Litigation Settlement
TORONTO - October 14, 2005
Automodular Corporation, formerly Algonquin Mercantile Corporation ("Automodular"), reports that its agreement to settle outstanding litigation with West Street Capital (formerly Consolidated Enfield Corporation) has been approved by the Superior Court of Justice. The litigation was commenced in 1995 and concerned alleged oppression in the management of the business of Enfield. In the litigation, Automodular was seeking damages from the defendants, including Hees International Bancorp Inc. (a predecessor of Brascan Corporation) for itself in the amount of $35 million and for West Street in the amount of approximately $225 million. Under the settlement, West Street is to receive a payment of $3 million from Brascan Corporation. Automodular is to receive a payment from Brascan of $11 million. There has been no admission of liability on the part of any party. The purpose of the settlement is to eliminate the expense and opportunity cost for all parties associated with continued litigation.
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