U.S. private equity firm Cartesian Capital Group said it filed a complaint against IC Potash Corp (TSX: ICP), a Toronto explorer and developer of potassium fertilizer minerals in New Mexico. The complaint, filed in a New York State court, is for damages of at least US$10 million. Cartesian, which has invested as a minority partner in the company’s U.S. potash affiliate, alleges misappropriation of the joint venture’s funds. It also said IC Potash refused to fund the capital needs of the joint venture. Resource Capital Funds is among the company’s investors.
Cartesian Capital Files Suit Against IC Potash (Canada)
NEW YORK, July 12, 2017 /PRNewswire/ — Cartesian Capital Group, LLC announced that two of its affiliates had filed a complaint against IC Potash Corp. (“ICP Canada”) in New York State court for money damages of at least $10 million.
The Cartesian affiliates are minority partners in a joint venture majority owned by ICP Canada. The complaint alleges that ICP Canada breached its fiduciary duty by misappropriating joint venture funds, using them for unrelated purposes, including ICP Canada’s own corporate purposes. The Cartesian affiliates also assert that ICP Canada has breached its contractual obligations for corporate transparency by refusing to provide mandated financial reporting. Additionally, the complaint outlines ICP Canada’s refusal to fund the essential capital needs of the joint venture.
“The joint venture has tremendous promise and value,” said Peter Yu, Cartesian’s Managing Partner. “It is disappointing to see our partner, ICP Canada, raise capital and then use those funds for its own staff and overhead rather than investing in the joint venture.” Mr. Yu added: “Although we are not shareholders of ICP Canada, we sympathize with its shareholders regarding the poor treatment by ICP Canada of its prime asset and funds.”
SOURCE: Cartesian Capital Group, LLC
Photo courtesy of IC Potash Corp