Home Equity Income Trust Converts to a Corporation

    TORONTO, June 30 /CNW/ - Home Equity Income Trust (TSX: HEQ.UN) (the
"Trust") announced today that it has completed its conversion from an income
trust to a corporate structure (the "Conversion") in accordance with a final
order issued by the Ontario Superior Court of Justice on May 5, 2009. The
Conversion has resulted in the reorganization of the Trust's income trust
structure to a publicly-listed corporation, HOMEQ Corporation (TSX: HEQ)
("HOMEQ"). Unitholders of the Trust received, for each unit held, one common
share of HOMEQ. The Conversion was completed on a tax-free rollover basis for
Canadian residents. The common shares of HOMEQ will commence trading on the
Toronto Stock Exchange on July 3, 2009. Concurrently, the Trust units will be
    The Trust previously announced the Conversion as part of its plan to
continue its operating subsidiary, Canadian Home Income Plan Corporation
("CHIP") as a federally-regulated, Schedule I Canadian bank. The new bank will
be called HomEquity Bank in English and Banque HomEquity in French. By
obtaining a bank charter HomEquity Bank will have access to retail deposits
sourced through deposit brokers. Continuing CHIP as a bank is subject to the
review and approval of an application to the Minister of Finance and is
anticipated to occur in the third quarter of 2009.

    Forward Looking Statements

    HOMEQ Corporation from time to time makes written and verbal
forward-looking statements about business objectives, operations, performance,
and financial condition, including, in particular, the establishment of
HomEquity Bank, and the likelihood of success in developing and expanding its
business. These may be included in HOMEQ's and the Trust's Annual Reports,
regulatory filings, reports to securityholders, press releases, presentations
and other communications. These forward-looking statements are based upon a
number of assumptions and estimates that are inherently subject to significant
uncertainties and contingencies many of which are beyond the control of HOMEQ.
Actual results may differ materially from those expressed or implied by such
forward-looking statements. HOMEQ does not undertake to update any
forward-looking statement, whether written or verbal, that may be made from
time to time except as required by applicable securities laws.

    About HOMEQ Corporation

    HOMEQ Corporation invests in reverse mortgages originated by its wholly
owned subsidiary Canadian Home Income Plan Corporation. As of March 31, 2009,
the portfolio generating cash returns to HOMEQ comprised approximately 7,000
reverse mortgages with an accrued value of $826 million, secured by
residential properties across Canada worth approximately $2.3 billion. CHIP
(www.chip.ca), has been the main underwriter of reverse mortgages in Canada
since pioneering the concept in 1986.

    HOMEQ's securities trade on the Toronto Stock Exchange under the symbol
HEQ. Additional information on HOMEQ and the Trust, including annual and
quarterly reports can be viewed at www.homeq.ca.

    %SEDAR: 00018040E

For further information:

For further information: Steven K. Ranson, President and Chief Executive
Officer, (416) 413-4663; Gary Krikler, Senior Vice President and Chief
Financial Officer, (416) 413-4679

Organization Profile


More on this organization

HOMEQ Corporation

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890