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Texas Court Asked to Appoint Receiver for Key Subsidiary of TSX Listed Northstar Healthcare, Inc. (TSX NHC) on Claims of Mismanagement and Breach of Fiduciary Duty
Date:2/17/2010

during working hours. 20. In fact, on information and belief, the Northstar companies appear to be working to destroy Palladium as an ongoing business. On information and belief, in an effort to open a new surgery center that would compete with Palladium, beginning in January 2010, Northstar began recruiting physicians away from Palladium. These actions have been hidden from Plaintiff. 21. Further, on information and belief, since November 2009, the Northstar companies have been attempting to shut down Palladium and to then sub-lease the facility to certain members of the Partnership. On information and belief, this business opportunity has only been offered to a small number of partners, and has been hidden from other partners, such as Plaintiff. 22. Finally, on information and belief, in November 2009, Northstar companies attempted to sell the assets of Palladium to one of the current partners for approximately $2.6 million. This sale would have been extremely detrimental to the remaining partners, and was hidden from Plaintiff and the other partners. 23. Because of the Northstar companies' aforementioned failures to develop business, their numerous acts of mismanagement, and their self- dealing at the expense of other partners, the Partnership is in imminent danger of insolvency. 24. All other remedies at law or in equity, including the appointment of a receiver for the specific assets of the defendant, are inadequate to protect the Partnership and the Plaintiff in that there is not presently pending any litigation that would allow Plaintiff to seek the appointment of an ancillary receiver, nor does plaintiff have a cause of action that, if asserted, would allow the appointment of a receiver for the Defendant's specific assets. VI. CAUS
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SOURCE Brad Kovnat
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