Ontario's Public Trustee charged that Maple Leaf Gardens
Ltd. (MLG) failed to take any steps to "maximize value for
shareholders before the company's takeover by MLG Ventures." In
a new set of allegations specifically against Gardens management,
the trustee and ministry of the attorney-general contend company
officials didn't "make any or adequate attempts" to find out what
potential buyers would pay. The two government agencies have
already alleged the executors of the estate of late Gardens owner
Harold Ballard "breached their fiduciary duties to a group of
designated charities by selling his estate's stake in the hockey
franchise privately to MLG Ventures, and not on the open market."
The two agencies want to the courts to unwind the deal and return
the shares to the estate. MLG Ventures and the Gardens "have
denied all the allegations which must still be proven in court."
The estate's three executors are all members of the Gardens
board. Stave Stavro is Chair and CEO of the Gardens and Donald
Crump is the company's treasurer (Tony Van Alphen, TORONTO STAR,
9/16). The trial to decide the future ownership of Maple Leaf
Gardens will likely start next spring (Van Alphen, TORONTO STAR,
9/19).
