Davies partner Kent Thomson was recently quoted in National Post, Financial Post, about Home Capital Group Inc. and the lengthy process it will face as it struggles to shore up its liquidity and restore market confidence.
Kent pointed out that depending on how the proceedings play out, "it could be a multi-year process."
He commented that in his experience, it could be more than a year before the potentially lengthy hearing on the merits begins. And once the facts of the case are heard, the OSC panel could take as long as a year to render a decision. He also noted that it is common for some respondents named in a case to settle with the OSC before a hearing begins.
If Home Capital finds a buyer or is forced to seek protection under the Companies' Creditors Arrangement Act, Kent believes it may complicate proceedings against the company but, regardless of the outcome, proceedings against the individuals named are likely to go on.
According to the article, Home Capital plans to vigorously defend its approach to disclosure in the proceedings. If the OSC panel finds Home Capital did violate the Securities Act, another hearing will be needed to determine what disciplinary actions should be taken.
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