Coventree Comments on Pan-Canadian Investors Committee Restructuring Plan


    Toronto Stock Exchange Symbol: COF

    TORONTO, March 19 /CNW/ - Coventree Inc. (TSX: COF) ("Coventree" or the
"Company") acknowledges the recent announcement by the Pan-Canadian Investors
Committee (the "Investors Committee") of the application filed in the Ontario
Superior Court of Justice (the "Court") under the Companies' Creditors
Arrangement Act (the "CCAA") 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 ("ABCP") and
the granting of an initial order (the "Order"). The Investors Committee has
filed a copy of the Restructuring Plan, the related Information Statement and
other documents with the Court. These documents will be available on Ernst &
Young Inc.'s public website for the ABCP restructuring
( once finalized. Coventree continues to
cooperate with and support the efforts of the Investors Committee. The Company
worked with the Investors Committee in developing the Restructuring Plan and
supports it under the terms of a plan support agreement.
    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 to provide
for the payment of fees by certain conduits that have not been paid since the
commencement of the market disruption on August 13, 2007 (the "Market
Disruption"). As a result of these amendments, Coventree will receive fees
that it believes in aggregate will at a minimum cover the costs of continuing
to perform its obligations as administrator of the Coventree-sponsored
conduits until the expected implementation of the Restructuring Plan.
Depending on the timing of receipt of those fees and when wind-up costs are
taken into consideration, Coventree's profitability could vary significantly
in any particular quarter. These amendments will be effective regardless of
whether the Restructuring Plan is consummated.
    Under the Order, the Coventree-sponsored conduits and the Coventree
entities that administer, manage and sponsor them are now subject to stays of
proceedings under the CCAA, pending the approval by noteholders and
implementation of the Restructuring Plan. Payment of fees and expenses to
Coventree will continue in the ordinary course and are secured by a special
charge on the assets of the Coventree-sponsored conduits. While Coventree was
not an applicant under the application filed with the Court, the Order affects
Coventree and stays potential legal proceedings that may be brought against it
in connection with the Market Disruption.
    Under the Restructuring Plan, the assets of the Coventree-sponsored
conduits will be transferred to new special purpose entities that will issue
new notes to holders of existing securities, and it is expected that the
Coventree-sponsored conduits will be terminated. The new special purpose
entities will be administered by a new third party administrator following an
orderly transition. The Restructuring Plan also provides that unadvanced
credit enhancement reserves funded by loans from Coventree to the
Coventree-sponsored conduits will be repaid to Coventree in full upon the
implementation of the Restructuring Plan. Certain other credit enhancement
loans from Coventree already applied by the Coventree-sponsored conduits
toward the payment of ABCP will be assumed by the new special purpose entities
and retain their existing priority for repayment.
    The Restructuring Plan also provides that Coventree will receive
comprehensive releases in respect of legal claims that might be asserted
against it in respect of its role as sponsor, administrative agent and
financial services agent for the Coventree-sponsored conduits. The
Restructuring Plan states that Coventree will also provide similar releases to
other participants in the restructuring.
    There can be no assurance that the Restructuring Plan will be
implemented. The Investors Committee has advised that implementation of the
Restructuring Plan is subject to a number of conditions, including execution
of definitive legal documentation, completion of due diligence, receipt of
internal approvals by dealer bank asset providers and participating Schedule I
banks, receipt of requisite approvals of noteholders and final sanction by the
Court. A variety of consents and other approvals will be necessary or
desirable in connection with the restructuring, including certain governmental
and regulatory approvals.
    Previously, the Company announced that it had established a special
committee of the Company's board of directors (the "Special Committee") to
explore and consider strategic options to maximize value for shareholders.
Among other things, the Special Committee considered the future viability of
the Company's existing business units and concluded that they were no longer
viable. The Special Committee also concluded that it would not actively pursue
any strategic options for the Company that would result in it having ongoing
operations, and advised that it is expected that the Company will seek an
orderly windup of its operations once the Restructuring Plan is implemented.
As a result of these conclusions and developments, following a recommendation
made by the Special Committee, the board of directors of the Company dissolved
the Special Committee.

    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 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:

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