NEX Symbol: COF.H
TORONTO, Jan. 4, 2012 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree" or the "Company") announced today that, on December 31, 2011, it repaid in full the limited recourse debentures in the amount of approximately $3.2 million (including interest) that matured on that date. The proceeds from the initial issuance of these debentures in 2004 were loaned by Coventree to a company owned by Geoffrey Cornish and to two companies owned by Dean Tai. Mr. Cornish is a director and current CEO of Coventree, Mr. Tai is a former director and CEO of Coventree, and each of them currently owns or controls, directly or indirectly, approximately 25% of the outstanding shares of Coventree.
Those loans are evidenced by separate promissory notes and secured by pledges of an aggregate of one million common shares of Coventree that are owned by the companies owned by Messrs Cornish and Tai. These promissory notes also matured on December 31, 2011.
Coventree has agreed to extend until March 31, 2012 the maturity date for the loan owing by Mr. Cornish's company. No extensions have been granted in respect of the loans owed by Mr. Tai's companies and these loans are now in default. The aggregate amount of the loans owed to Coventree by Mr. Tai's companies was approximately $1.62 million at December 31, 2011, and the aggregate amount of the loan owed to Coventree by Mr. Cornish's company was $1.55 million at that same date.
Coventree intends to take appropriate steps to recover the amounts owing by Mr. Tai's companies including, if necessary, realizing on its security.
This press release is intended for distribution in Canada only.
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