TORONTO, April 30 /CNW/ - Citigroup Finance Canada Inc. (the
"Corporation"), a wholly-owned indirect subsidiary of Citigroup Inc., received
an equity investment of approximately C$726 million on April 28, 2009 from
Associates First Capital Corporation, the Corporation's sole shareholder (and
a wholly-owned subsidiary of Citigroup Inc.).
At December 31, 2008, the Corporation had negative shareholder's equity
of approximately C$149 million. The negative shareholder's equity position
arose as a result of the annual assessment of the Corporation's goodwill and
intangible assets (required by Canadian generally accepted accounting
principles) and reflects a non-cash impairment charge of approximately C$766
million before income taxes in the Corporation's CitiFinancial Canada, Inc.
subsidiary. The equity investment returns the Corporation's shareholder's
equity to a level consistent with the recent past. As a result of the
additional equity, the Corporation has significantly higher liquidity which it
can deploy to its affiliates and other third parties in accordance with its
usual prudent practice for excess liquidity.
As a result of the aforementioned impairment in goodwill and intangible
assets, the Corporation reported a net loss of approximately C$694 million for
the year ended December 31, 2008 and total assets of approximately C$7.8
billion as at December 31, 2008.
For further information:
For further information: Pablo Suarez, Citigroup Finance Canada Inc.,
(416) 947-5467; Troy Underhill, Citigroup Inc., (905) 755-3399