Coventree Provides Update on D&O Insurance Claim

NEX Symbol: COF.H 

TORONTO, Sept. 14, 2011 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree" or the "Company") today provided an update on the previously announced notice of application filed by Coventree against Navigators Pro, on behalf of Lloyds Syndicate 1221 (Millenium Syndicate) (collectively, "Navigators Pro"), in connection with Coventree's claim for coverage under its directors and officers liability insurance policy with Navigators Pro.

Coventree's view of the Navigators Pro policy is that it provided coverage to a limit of $5 million for the matters that were the subject of the notice of hearing and related statement of allegations issued by Ontario Securities Commission staff dated December 7, 2009 (the "Notice of Hearing").  Accordingly, the Company notified Navigators Pro of a claim under its policy for coverage for Coventree and the individuals named in the Notice of Hearing. In response, Navigators Pro advised the Company that it believed that it had no obligation under the policy to provide coverage in respect of the claims made against Coventree and the individuals named in the Notice of Hearing. In October 2010, the Company commenced proceedings in the Superior Court of Justice of Ontario against Navigators Pro in respect of its claim under the policy, and the hearing for Coventree's application was heard in August 2011.

The Court ruled on September 13, 2011 that the Navigators Pro policy is operative and must respond to the claim made by Coventree for coverage under that policy. As a result, Coventree intends to continue to pursue its claim for coverage in respect of the claims made against Coventree and the individuals named in the Notice of Hearing to the $5 million limit under the policy.

Navigators Pro has the right to appeal the Court's decision to the Ontario Court of Appeal within 30 days of the date of the Court's decision. As a result, until the time period for the filing of an appeal has passed or, if a notice of appeal is filed, until the appeal has been resolved, there can be no assurance regarding when Navigators Pro will pay under the policy nor as to whether Navigators Pro will be liable to provide coverage at all.

This press release is intended for distribution in Canada only.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Coventree Inc.

For further information:

Craig Armitage
The Equicom Group Inc.
Tel: (416) 815-0700 x278


Ani Hotoyan-Joly
Coventree Inc.
Tel: (416) 572-2721

Profil de l'entreprise

Coventree Inc.

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