Prospetus Misrepresentation Claims Against Gauntlet Energy

On June 17, 2003 Gauntlet Energy Corporation was granted protection from creditors by an initial order under the Companies’ Creditors Arrangement (CCAA) proceedings pressed over by Justice Sal LoVecchio of Alberta’s Court of Queen’s Bench. The potential for a restructuring of Gauntlet was complicated by certain shareholder claims against Gauntlet, its officers, dierectors, an underwriting syndicate and its independent reserve engineers, commenced by certain of Guantlet’s institutional investors by a class of retail investors in Gauntlet. The Court ordered that, in the interests of restructuring Gauntlet and with the consent of the parties, all of the shareholder claims against Gauntlet be mediated under the supervision of Madam Justice Papany of the Alberta Court of Appeal. After an expedited discovery process during the summer of 2003, a three day mediation was convened in Calgary from September 29 to October 1. A confidential settlement was achieved through the mediation which was later approved by the Court of the mediation. The settlement of the investor claims was approved by the Honourable Mr. Justice S.J. LoVecchio on November 24, 2003. On November 6, 2003 the Court authorized Gauntlet to mail its proposed Plan of Arrangement under the CCAA to its Creditors. Creditor meetings were held December 4th at Calgary

Gauntlet was represented by Burnet, Duckworth & Palmer LLP in Calgary, with a team that included Brian P. O’Leary, Q.C. (insolvency), Daniel McDonald (litigation), Doug Nishimura, Carla Murray and Paul Nigol (insolvency/litigation).

The largest secured creditor, Alberta Treasury Branches, was represented by Larry Robinson and Sean Collins (insolvency) of Miller Thompson LLP. PricewaterhouseCoopers Inc., moitor in the proceedings, was represented by Borden Ladner Gervais LLP with a team that included Patrick McCarthy, Q.C. and Josef Kruger (insolvency).

In the shareholders claims Gauntlet’s institutional investors were represented by Peter Jervis, Susan Wortzman, and Brian Radnoff of Lerners LLP. The class of retail investors was represented by Jim Shea, Norm Anderson, and Jeff Moroz of Shea Nerland Calnan LLP. The Underwriting Syndicate was represented by Tris Mallett, Colin Feasby, and Geraldine Teixeira of Osler, Hoskin & Harcourt LLP. Laurie Sibbald, former CEO of Gauntlet, was represented by Jim Eamon and Derek Pagenkopf of Code Hunter LLP. The Inside Directors were represented by Jim Rooney and Doug Stokes of Rooney Prentice LLP. The Outside Directors were represented by Alan Macleod, Ste Leitl, and Juile Whitaker of Macleod Dixon LLP. The Outtrim Szabo, Gauntlet’s reserve engineers, was represented by Perry Mack of Mack Machida Shewchuk.