TORONTO, Sept. 30 /CNW/ - The Northwater Five-Year Market-Neutral Trust (the "Trust") today is providing investors with a further update on the status of the liquidation of the Trust's assets in connection with the June 30, 2009 (the "Termination Date") termination of the Trust. As has been previously announced, market conditions have prevented Northwater Fund Management Inc. (the "Manager"), the Manager of the Trust, from fully liquidating the Trust's assets by the Termination Date.
As indicated in our press release of June 26th, 2009, the Toronto Stock Exchange (the "TSX") expressed concern about the continued listing of units of the Trust on the TSX and suggested that it may be necessary to delist the units of the Trust on or about September 30, 2009. The TSX informed the Manager yesterday afternoon of its decision to delist the units of the Trust effective as of September 30, 2009.
The Manager continues to actively seek to monetize the underlying hedge fund portfolio and distribute the proceeds to unitholders as quickly as is practicable. Regardless of the delisting of units of the Trust on September 30, 2009, the Trust will continue to exist and unitholders will have a right to the return of their pro rata share of the assets of the Trust as such assets are liquidated and cash becomes available for distribution to unitholders.
Notwithstanding the fact that the Trust will continue to exist until all of its assets are able to be liquidated and returned to unitholders, the TSX has determined that, in order to maintain the listing, a formal unitholder meeting would have been required. The Manager's view is that the cost of holding such a unitholder meeting would have outweighed the benefit of maintaining the listing. This is particularly true in the context of the significant distribution made to unitholders on July 15, 2009 and the resulting decline in the value of the Trust's assets. The Manager is keen to minimize the costs of the Trust in an effort to maximize proceeds to unitholders.
The Manager is committed to providing additional details to unitholders as they become available.
Units of the Northwater Five-Year Market-Neutral Trust are listed on The Toronto Stock Exchange under the symbol NYF.UN.
SOURCE NORTHWATER FIVE-YEAR MARKET-NEUTRAL TRUST
For further information: For further information: Mohamed Khaki at Northwater Capital Management Inc. at (416) 360-5435