Publisher Jordan Bitove apologized to staff for 'public spectacle'. The parties agreed in court to settle their dispute privately
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After alarming headlines and the “public spectacle” of their acrimonious fight for control of the Toronto Star and its related assets the two warring partners are retreating behind closed doors to settle things.
Lawyers for Paul Rivett and Jordan Bitove, two businessmen who bought Torstar Corporation for about $60 million in 2020 and who have since found their relationship is “irrevocably impaired” over different views of how the media giant should be run, told an Ontario court judge the pair were having productive discussions.
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Comparing the dispute to a messy divorce, Jason Wadden, a lawyer for Rivett, suggested cooler heads are prevailing.
In an internal email to Toronto Star staff, Bitove, in turn, apologized for the “public spectacle” of the dispute.
The problems afflicting the Star and other newspapers under the same corporate ownership are no different than challenges faced across the industry as newspapers struggle to find their way in the digital landscape, Wadden told Judge Peter Cavanagh of the Ontario Superior Court of Justice.
The partners, Wadden said “have two different visions of how to proceed.
“We just have to decide which of the two partners will take over the company.”
At the brief hearing, Robert Thornton, a lawyer representing Bitove, agreed that both sides were moving to a private adjudicative process rather than the force auction of assets sought by Rivett’s lawsuit.
While that process unfolds, the lawyers told Cavanagh, Rivett’s motion for a forced sale would be held in abeyance.
The language and joviality of the lawyers in court, held virtually by Zoom video conferencing, contrasted with the language in Rivett’s lawsuit and an earlier written statement from Bitove.
The change in mood also signals that Torstar probably won’t be sold for parts at a forced auction.
The dispute, according to both sides, was one of investing in journalism versus making cuts to protect corporate resources.
The pair, who had been friends for more than a decade, bought Torstar Corporation in 2020 as a 50/50 partnership through a jointly owned firm called Nordstar. Bitove was named publisher of Toronto Star, its flagship newspaper, and Rivett named chair of Torstar, the corporate umbrella.
“Starting in or about March 2022, the relationship between Rivett and Bitove began to break down and has now been irrevocably impaired,” says Rivett’s lawsuit.
“Rivett and Bitove have fundamentally different and irreconcilable views,” the lawsuit says. “Bitove has ignored Nordstar’s agreed-to prime objective that Nordstar’s business be carried out in common with a view to profit,” the lawsuit alleges.
In response, Bitove said in a statement last week he wants to keep the Star in the game by emphasizing solid content and “investigative journalism our democracy depends upon… I make no apologies for doing so.”
After publicly airing their headline-grabbing dirty laundry, the partners decided to shut the laundry room door.
“I appreciate that recent events, reporting and industry speculation have left you, and those who care about you, our readers, and our partners feeling apprehensive,” Bitove says in an internal email to staff, obtained by National Post.
“My preference has always been to insulate the Star from distraction and public spectacle by resolving any partnership issues through private arbitration. For my part, I regret that this dispute has intruded into your day-to-day work in any way. And I want you to know that my dedication to building a more competitive and resilient Toronto Star won’t be dampened by the acts of one individual.
“You may have read that our lender has taken the position that Nordstar’s initial debt agreement is in default. To be clear, I am not aware of any default as a result of the performance of the newspaper. Not even close. Regardless, I have taken steps to defend against any adverse consequences that could arise from any steps taken by our lender, as a consequence of Mr. Rivett’s actions.”
The lawsuit filed by Rivett is in the names of two of his companies, Tevir Investments Inc. and 2753518 Ontario Inc., and names as defendants five Bitove-related companies and two men: Bitove and Frank Penny. Penny is a director on the Torstar board, the third man alongside Bitove and Rivett.
Rivett’s lawsuit claims Penny was appointed at the request of Bitove, is a Bitove family friend and owns a management firm that manages the financial affairs and taxes for the Bitoves.
The lawsuit filed by Rivett is in the names of two of his companies, Tevir Investments Inc. and 2753518 Ontario Inc., and names as defendants five Bitove-related companies and two men: Bitove and Frank Penny. Penny is a director on the Torstar board, the third man alongside Bitove and Rivett.
Rivett’s lawsuit claims Penny was appointed at the request of Bitove, is a Bitove family friend and owns a management firm that manages the financial affairs and taxes for the Bitoves.
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