TORONTO, Nov. 2 /CNW/ - The Northwater Top 75 Income Trusts PLUS (the "Trust") today is providing investors with an update on the status of actions taken within the Trust to effect the orderly liquidation of the Trust's assets as previously announced in anticipation of the scheduled termination of the Trust at December 31, 2009 (the "Termination Date").
The Trust generally holds an income trust portfolio comprised of an equally weighted portfolio of the largest 75 income trusts by market capitalization listed on the Toronto Stock Exchange. The Trust also has exposure to a portfolio of hedge funds held by Enhancement Fund Limited (the "Fund") through a forward purchase and sale agreement.
As announced previously, market conditions have caused many underlying hedge funds held by the Fund to invoke various restrictions on redemptions including, without limitation, restricting redemptions to a limited percentage of the aggregate net asset value of such underlying hedge funds, the temporary suspension of redemptions altogether, or the commencement of a controlled liquidation and wind-up of the underlying hedge fund's business.
Based on the information that Northwater Fund Management Inc. (the "Manager") had available to it at the time, the Manager anticipates that approximately 81% of the Fund (63% of the Trust) were subject to restrictions on liquidity at September 30, 2009. In addition, the Manager estimates based on the information available to it at September 30, 2009 from the Trust's underlying hedge fund managers that approximately 59% of the Fund (46% of the Trust), based on the NAV at September 30, 2009, may continue to be subject to restrictions on liquidity that could extend beyond the Termination Date.
The Toronto Stock Exchange (the "TSX") has expressed to the Manager some concerns in relation to the continued listing of the units of the Trust on the TSX beyond the Termination Date. We expect to hear from the TSX on this matter in early December. Regardless of whether the listing on the TSX is maintained beyond the Termination Date the Trust will continue to exist and unitholders of the Trust will have a right to the return of their pro rata share of the assets of the Trust as such assets are liquidated and cash becomes available for distribution to unitholders.
The Manager continues to actively seek to monetize the underlying hedge fund portfolio and distribute the proceeds to unitholders as quickly as is practicable.
The Manager is committed to providing additional details to unitholders as they become available.
Units of the Northwater Top 75 Income Trusts PLUS are listed on The Toronto Stock Exchange under the symbol NTP.UN.
SOURCE NORTHWATER TOP 75 INCOME TRUSTS PLUS
For further information: For further information: Mohamed Khaki at Northwater Capital Management Inc. at (416) 360-5435