Coventree Comments Further on Impact of Pan-Canadian Investors Committee Restructuring Plan



    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/

    Toronto Stock Exchange Symbol: COF

    TORONTO, March 26 /CNW/ - Coventree Inc. (TSX: COF) ("Coventree" or the
"Company") today provided further comments on the impact of the Pan-Canadian
Investors Committee (the "Investors Committee") restructuring plan.
    On March 17, 2008, the Investors Committee filed an application in the
Ontario Superior Court of Justice (the "Court") under the Companies' Creditors
Arrangement Act to ask the Court to call a meeting of noteholders to vote on
the Investors Committee's plan (the "Restructuring Plan") to restructure
Canadian third party asset-backed commercial paper. As previously disclosed,
prior to the filing of the Restructuring Plan, the terms of the agreements
under which Coventree administers and manages the conduits it sponsors were
amended with the approval of the Investors Committee. The amendments were also
approved by the Court in its initial order dated March 17, 2008. The
amendments relate to, among other things, the fee arrangements with Coventree
for the period from the commencement of the market disruption in August 2007
through to the expected implementation of the Restructuring Plan. The
amendments were negotiated with the Investors Committee in conjunction with
similar negotiations with all other sponsors of the ABCP conduits that are
subject to the Restructuring Plan. The objective of these negotiations was to
provide for a consistent approach to fees for all conduit sponsors for the
continued performance of asset administration and management over the period
from the date of the Montreal Accord to the expected implementation of the
Restructuring Plan.
    For Coventree, the amendments authorize the reimbursement of certain
expenses paid by Coventree on behalf of the conduits and the payment of fees
by certain conduits to Coventree for services that have been and will be
performed but have not been recorded as revenue by or paid to Coventree since
the commencement of the market disruption in August 2007. Coventree has
determined that the total amount of the expense reimbursements and additional
fees that it will receive under the amendments to date is approximately
$1 million and $10 million, respectively. Although Coventree has reviewed its
calculations in this regard with Ernst & Young Inc. ("E&Y"), in its capacity
as court-appointed monitor under the Restructuring Plan, they remain subject
to final confirmation and approval by E&Y. Coventree expects that these fees
will be recorded as revenue in its fiscal second quarter ended March 31, 2008
and believes that they will be sufficient to cover the costs and expenses of
continuing to perform its obligations as administrator of the
Coventree-sponsored conduits until the expected implementation of the
Restructuring Plan and severance and certain other expenses associated with
the wind up of its business.
    In preparing its consolidated financial statements in the past, Coventree
has adopted the requirements of the Canadian Institute of Chartered
Accountants Accounting Guideline 15 - Consolidation of Variable Interest
Entities ("AcG-15"), which required the Company to consolidate certain
variable interest entities ("VIEs") such as the ABCP conduits sponsored by
Coventree and certain other special purpose vehicles. However, in accordance
with AcG 15, the Company has concluded that a reconsideration event occurred
on March 17, 2008 and that the Company is no longer required under AcG 15 to
consolidate the VIEs as of that date. As a result, the Company's future
financial statements prepared in accordance with generally accepted accounting
principles will be greatly simplified and, in the view of management, will
more accurately reflect Coventree's results of operations and financial
condition.

    Forward-Looking Statements
    --------------------------
    This press release includes certain forward-looking statements, including
those identified by the expressions "may", "would", "could", "will",
"anticipate", "believe", "plan", "forecast", "estimate", "expect", "intend",
"aim", "vision", "mission", "endeavour" and similar expressions to the extent
they relate to Coventree or management. The forward-looking statements are not
historical facts but reflect Coventree's current expectations regarding future
results or events based on information currently available to Coventree. This
press release is intended for distribution in Canada only.
    These forward-looking statements are subject to a number of known and
unknown risks, uncertainties and assumptions. Many factors could cause actual
results, performance or events to differ materially from current expectations
that may be expressed or implied by such forward-looking statements,
including, without limitation, the matters discussed under "Risks and
Uncertainties" contained on pages 21 to 24 of the Company's Management
Discussion and Analysis for the year ended September 30, 2007 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 statements prove incorrect, actual results,
performance or achievements could vary materially from those expressed or
implied by the forward-looking statements contained in this report. These
factors should be considered carefully and prospective investors should not
place undue reliance on the forward-looking statements. Although the
forward-looking statements contained in this press release are based upon what
Coventree currently believes to be reasonable assumptions, Coventree cannot
assure prospective investors that actual results, performance or achievements
will be consistent with these forward-looking statements. These
forward-looking statements are made as of the date of this press release and
Coventree does not intend, and does not assume any obligation, to update or
revise these forward-looking statements.

    About Coventree
    ---------------
    Prior to the Market Disruption, Coventree was a financial services
company focused on specialized niches. Coventree's principal business
operations are currently in two business segments - Coventree Capital & Admin
and Coventree Investments. Coventree Capital & Admin is comprised of two
businesses, the Capital Markets business and the Administration business.
Prior to the Market Disruption, the Capital Markets business specialized in
structured finance using securitization-based funding technology. The
Administration business provides services to ABCP trusts sponsored by the
Company and by third parties. Prior to the Market Disruption, Coventree
Investments made strategic investments in synergistic businesses.

    %SEDAR: 00024386E




For further information:

For further information: Craig Armitage, The Equicom Group Inc., Tel:
(416) 815-0700 x278, Email: carmitage@equicomgroup.com

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