TORONTO, April 21, 2012 /CNW/ - Duff & Phelps Canada Restructuring Inc., in its capacity as liquidator of Coventree Inc. (the "Liquidator") today announced that it will be making a motion before the Ontario Superior Court of Justice - Commercial List (the "Court") to seek the approval of, 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. The Liquidator's motion is scheduled for hearing on April 30, 2012. If approved by the Court, it is expected that the interim distribution will occur on or shortly after May 4, 2012. A copy of the materials for this motion is posted on the Liquidator's website at www.duffandphelps.com/restructuringcases
It is anticipated that the cash portion of the interim distribution will include a return of capital in the amount of approximately $0.46 per Coventree common share.
There are 15,157,138 shares of Coventree outstanding. The cash component of the interim distribution will be approximately $2.94 per share.
Coventree owns 2,661,449 common shares of Xceed. If the recommended distribution in kind of these shares is approved, Coventree shareholders will receive approximately 0.175 shares of Xceed for each share of Coventree held. Fractional shares will not be distributed. The Liquidator is seeking approval to record the per share value of the Xceed shares for tax purposes upon the distribution as the quoted bid price 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.
If the proposed interim distribution is approved by the Court, further details will be provided when Coventree issues tax forms to shareholders.
This press release includes certain forward-looking statements relating to the timing and amount of the interim distribution if it is approved by the Court, the amount of cash proposed to be distributed, the number of Xceed shares to be distributed, the anticipated amount of the return of capital that will constitute part of the interim distribution and the timing of the hearing of the motion to approve the distribution. These statements are identified by expressions such as "will", "expects", "intends" 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 amount of the return of capital could be significantly reduced and/or the timing, character and amount 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
Email: [email protected]