TORONTO, June 9 Private equity fund Catalyst
Capital Group Inc recently proposed a strategic partnership with
Home Capital Group Inc that would see it injecting new
capital into the lender, the Toronto-based Globe & Mail
newspaper reported on Friday.
Citing sources familiar with the proposal, the Globe & Mail
reported that Catalyst, an asset manager that focuses on
distressed companies, had also put forward a proposed new
management team for Home Capital with banking experience.
Home Capital is currently recruiting a new chief executive
and chief financial officer.
The report said Catalyst is understood to have lined up
support for the proposal from a group of institutional
Depositors have withdrawn 95 percent of funds from Home
Capital's high interest savings accounts since March 27, when
the company terminated the employment of former Chief Executive
The withdrawals accelerated after April 19, when the Ontario
Securities Commission, Canada's biggest securities regulator,
accused Home Capital of making misleading statements to
investors about its mortgage underwriting business.
The company has said the accusations are without merit. Its
funding has stabilized.
Home Capital declined to comment. Catalyst Capital did not
respond to requests for comment.
(Reporting by Matt Scuffham)