TORONTO, April 30, 2012 /CNW/ - Duff & Phelps Canada Restructuring Inc., in its capacity as liquidator of Coventree Inc. (the "Liquidator") today announced that the Ontario Superior Court of Justice - Commercial List (the "Court") approved, among other things, an interim distribution to shareholders of Coventree Inc. ("Coventree") to be comprised of $44.5 million in cash and a distribution in kind of all of the shares of Xceed Mortgage Corporation ("Xceed") owned by Coventree, net of any applicable withholding taxes. It is expected that the interim distribution will occur on May 4, 2012. A copy of the order issued by the Court approving the interim distribution will be posted on the Liquidator's website at www.duffandphelps.com/restructuringcases.
There are 15,157,138 common shares of Coventree outstanding. The cash component of the interim distribution is approximately $2.94 per share, which includes a return of capital in the amount of $0.46 per share.
Coventree owns 2,661,449 common shares of Xceed. Coventree shareholders will receive approximately 0.175 shares of Xceed for each share of Coventree held. Fractional shares will not be distributed. The Court order directs the Liquidator to record the per share value of the Xceed shares for purposes of the interim distribution as the quoted bid price for Xceed common shares as at the close of trading on the Toronto Stock Exchange on the business day immediately prior to the date on which the distribution is made.
This press release includes certain forward-looking statements relating to the timing of the interim distribution approved by the Court. These statements are identified by expressions such as "will", "expects", and similar expressions. These forward-looking statements are not historical facts but reflect the Liquidator's current expectations regarding future events based on information currently available to Liquidator.
These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions which may be substantial. Many factors could cause actual results or events to differ materially from current expectations that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, the timing of the interim distribution could be significantly impacted or delayed, as applicable. These factors should be considered carefully and shareholders should not place undue reliance on the forward-looking statements. These forward-looking statements are made as of the date of this press release and the Liquidator does not intend, and does not assume any obligation, to update or revise these forward-looking statements, except as required by law.
This press release is intended for distribution in Canada only.
For further information:
Duff & Phelps Canada Restructuring Inc.
Tel: (416) 932-6225