Toronto Stock Exchange Symbol: COF
TORONTO, Feb. 27 /CNW/ - Coventree Inc. (TSX: COF) ("Coventree" or the
"Company") today announced that, as part of its ongoing workforce reductions
during the orderly wind down of its operations, Dean Tai will be retiring as
Chief Executive Officer. Mr. Tai has also resigned as a Director of Coventree
and decided not to stand for re-election as Director at Coventree's next
annual meeting. The Company has agreed to pay Mr. Tai $1 million in two equal
instalments, one payable now and the other payable on the winding up of the
Company, in connection with his departure. This amount is included in the
restructuring activities charge recorded by the Company during the fourth
quarter of fiscal 2008.
With its most recent workforce reductions, the number of full-time
employees at Coventree is currently 15, down from a peak of about 80 prior to
the August 2007 disruption in the Canadian asset-backed commercial paper
("ABCP") market. It is expected that Coventree's workforce will be further
reduced to approximately four employees on or about May 21, 2009, concurrent
with the expiry of Coventree's agreement to provide certain transitional
administrative services to the new special purpose vehicles that acquired the
assets formerly held by the Coventree-sponsored ABCP conduits.
"As one of the founders of Coventree, Dean's leadership was invaluable
throughout Coventree's history," said Brendan Calder, Chair of the Board of
Coventree. "Dean was instrumental in developing Coventree's culture and in
assembling a team of tremendously talented employees. He also persevered,
leading Coventree through the turbulent times that followed the Canadian ABCP
market disruption. On behalf of the Board and everyone at Coventree, I want to
thank Dean for his unwavering commitment over the past 11 years to Coventree,
its employees and shareholders."
"With the wind down of the business well underway and in very capable
hands, it is the appropriate time for me to make this decision," said Mr. Tai.
"I want to thank the current and former employees of the Company for their
dedication and passion, which made Coventree such an exceptional place to
work. I would also like to acknowledge the support of our customers, partners
and owners during the difficult times we faced over the past year and a half."
Coventree's Board of Directors appointed Geoffrey Cornish, currently
President of Coventree, as the new Chief Executive Officer. It is expected
that, after May 21, 2009, Coventree's management team will be comprised of Mr.
Cornish and Ani Hotoyan-Joly, as the new Chief Financial Officer.
This press release includes a forward-looking statement relating to the
Company's expectation to reduce its workforce. This statement can be
identified by the expressions "expected" and "will". This forward-looking
statement is not a historical fact but reflects Coventree's current
expectations regarding future events based on information currently available
This forward-looking statement is subject to a number of known and
unknown risks, uncertainties and assumptions. Many factors could cause
Coventree not to reduce its workforce at the time or to the extent that is
currently expected, including, without limitation, anything that could cause a
delay in the orderly wind up of the Company's business and the matters
discussed under "Risks and Uncertainties - Regulatory Risk" contained on page
16 of the Company's Management Discussion and Analysis for the three months
ended December 31, 2008 which is available under the Company's profile on
SEDAR at www.sedar.com. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking statement
prove incorrect, the Company may not reduce its workforce at the time or to
the extent that is currently expected, or at all. These factors should be
considered carefully and prospective investors should not place undue reliance
on this forward-looking statement. This forward-looking statement is made as
of the date of this press release and Coventree does not intend, and does not
assume any obligation, to update or revise it, except as required by law.
For further information:
For further information: Craig Armitage, The Equicom Group Inc., Tel:
(416) 815-0700 x278, Email: firstname.lastname@example.org