Creststreet 2007 Limited Partnership to propose alternative liquidity transaction to unitholders



    
    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/
    

    TORONTO, April 16 /CNW/ - Creststreet 2007 Limited Partnership (the
"Partnership") plans to propose an alternative liquidity transaction to its
unitholders that would provide them liquidity on the public energy securities
component of the Partnership's investment portfolio by no later than May 29,
2009 and the private investment portion of the portfolio by no later than May
29, 2011. May 29, 2009 is the date that unitholders of the Partnership would
have become entitled to redeem their shares of the Creststreet Resource Fund
("CRF") received in the mutual fund rollover transaction originally
contemplated by the Partnership.
    Due to the unprecedented instability in the markets for public energy
securities, private energy securities currently comprise approximately 33% of
the Partnership's net assets. The Partnership is currently not permitted to
complete the mutual fund rollover transaction to CRF because, under applicable
securities legislation, in order to transfer the assets of the Partnership to
CRF the percentage of the net assets of CRF made up of private securities
must, immediately after the transfer, be 10% or less.
    In order to provide unitholders an alternative liquidity transaction, the
Partnership plans to hold a special meeting of unitholders where unitholders
will be asked approve a reorganization. The first step of the reorganization
will be to amend the limited partnership agreement of the Partnership to
extend the dissolution date of the Partnership from May 29, 2009 to no later
than May 29, 2011.
    The Partnership will then transfer substantially all of the public
securities component of its portfolio, along with cash and certain private
securities, to Creststreet Energy Opportunities Fund ("CEOF") in exchange for
shares of CEOF of equal value. Upon completion of the transfer, the
Partnership will distribute the CEOF shares received to unitholders of the
Partnership as a return of capital.
    After completion of the initial transfer, the Partnership will continue
to hold a portfolio comprised principally of private securities. The
Partnership will endeavor to sell such private securities and will reinvest
the net proceeds therefrom on a basis substantially similar to CEOF's
investment objectives, except that no additional private securities will be
purchased. The Partnership will then complete a second transfer of all of its
assets to CEOF on a tax-deferred basis in exchange for shares of CEOF of equal
value as soon as it has achieved sufficient liquidity on its private
investments to allow the transfer to proceed and, in any event, no later than
May 29, 2011. Upon completion of the second transfer, the Partnership will be
dissolved and the CEOF shares received will be distributed to unitholders of
the Partnership on a tax-deferred basis.
    CEOF is a class of shares of Creststreet Opportunities Fund Inc. (the
"Corporation"), a mutual fund corporation. The manager of CEOF is Creststreet
Asset Management Limited. The investment objective of CEOF is to provide its
shareholders with long term capital growth through fundamental securities
selection by taking both long and short investment positions in equity, debt
and derivative securities and through strategic investment decisions. CEOF's
portfolio consists primarily of securities of issuers engaged in the global
energy sector. CEOF has no geographic, asset class or market capitalization
restrictions. CEOF is not a reporting issuer. The shares of CEOF received by
unitholders of the Partnership may be redeemed on a monthly basis.
    The reorganization is subject to the approval of the board of directors
of each of the general partner of the Partnership and the Corporation as well
as the Partnership's IRC. The reorganization is also subject to the approval
of 66 2/3% or more of the votes cast at a special meeting of unitholders of
the Partnership. The special meeting is currently expected to be held on or
before May 29, 2009 and materials in connection with the meeting will be
mailed to unitholders this month.

    About Creststreet

    Creststreet is an investment management firm specializing in structuring
and managing high-quality energy focused investment products for Canadian and
international institutional and high-net worth investors. Since inception in
2000, Creststreet has raised over $970 million for investment in resource and
renewable energy companies.

    CERTAIN STATEMENTS INCLUDED IN THIS PRESS RELEASE CONSTITUTE
"FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE SECURITIES ACT
(ONTARIO). SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS,
PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM ANY FUTURE
RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH
FORWARD-LOOKING STATEMENTS.
    THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE
REPRESENTS THE EXPECTATIONS OF CRESTSTREET AS AT APRIL 16, 2009, AND,
ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. HOWEVER, CRESTSTREET
EXPRESSLY DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY
FORWARD-LOOKING INFORMATION, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE, EXCEPT AS REQUIRED BY APPLICABLE LAW.





For further information:

For further information: Robert J. Toole, President & CEO, Creststreet
Asset Management Limited, (416) 862-7018, rtoole@creststreet.com

Organization Profile

CRESTSTREET 2007 LP

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