Co-owners of Toronto Star seek court order to close company as relationship between owners breaks down

One of the owners of Torstar Corp. is seeking a court order to shut down the media company for “irreparably damaging” relationships with business partners.

Paul Rivett, one of the owners of Nordstar Capital Inc., the investment firm that acquired Torstar in 2020, filed a petition with the Ontario Superior Court earlier this month for a clear path to immediate liquidation of Nordstar. is the only way to make for the companies under its umbrella.

Court documents filed Sept. 1 delve into the erosion of Rivett and partner Jordan Vitove’s relationship. It claims it failed to provide the star with the budget.

The filing also alleges that Bitove has neglected proper corporate governance and neglected its responsibilities to Torstar and Nordstar.

The claims have not yet been verified in court.

Neither Rivett nor Bitove, which each owns half of Nordstar, immediately responded to requests for comment, and Bitove has not filed a response with the court.

Nordstar owns Torstar Corp., Metroland Media Group and NorthStar Gaming Inc.

“Given the circumstances under which the company operates, the applicant, employees of the company under its control, and Torstar news readers could suffer irreparable harm if interim relief is not granted.” stated in the submitted documents.

Rivett has asked the court to appoint PricewaterhouseCoopers to administer the asset sale to resolve the “deadlock” between the parties.

Bitove resigned from Nordstar’s board on August 13, according to court documents.

In 2020, Nordstar acquired Torstar, taking the company private, including the Toronto Star and various local news outlets operating in other cities.

Prior to the deal closing, Nordstar raised its bid for Torstar from $52 million to $60 million in response to a rival offer to the media conglomerate.

The acquisition was financed by a loan from investment firm Canso Investment Counsel Ltd.

Rivett was previously president of Fairfax Financial, but prior to joining Bitove, Rivett was best known for helping launch the Toronto Raptors basketball team and was the owner who built the SkyDome (now Rogers Centre). I was part of a consortium.

canadian press