TORONTO, March 27, 2013 /CNW/ - SWEF TERRAWINDS RESOURCES CORP. ("SWEF Terrawinds") today announced that it is reminding investors of SWEF Terrawinds ("Investors") that, as previously announced, the period for tax indemnity claims to be filed by Investors will expire on July 31, 2013. Accordingly, Investors who intend to file a tax indemnity claim are urged to do so immediately. A tax indemnity claim received after July 31, 2013 will not be processed. In order for a tax indemnity claim to be processed, all required supporting materials must be submitted by July 31, 2013 and confirmation of receipt of all required materials must be obtained.
After July 31, 2013, SWEF Terrawinds will redeem the non-voting common shares of SWEF Terrawinds (each a "Share") held by Investors by paying to Investors the redemption amount per Share. The redemption amount per Share is an amount equal to: (A) the total amount of cash or cash equivalents standing to the credit of SWEF Terrawinds, less (i) the amount required to redeem the outstanding preferred shares in the capital of SWEF Terrawinds (being $100 in aggregate); and (ii) an amount equal to the existing and contingent liabilities determined by the directors of SWEF Terrawinds in good faith; divided by (B) the total number of outstanding Shares. The redemption is expected to occur prior to the end of 2013.
After adjusting for expected operating and wind-up expenses and reserves but before giving any effect to additional tax indemnity claims filed and paid between now and July 31, 2013, SWEF Terrawinds currently expects that Investors could receive approximately $1.00 for each Share they hold. This amount could vary significantly if additional tax indemnity claims are filed between today and July 31, 2013 or other unanticipated expenses arise. As with previous cash distributions to Investors, funds payable to Investors upon the redemption will be distributed to Investors' broker accounts in which the Shares are held. More details on the tax treatment of the redemption amount to Investors are provided in a letter sent today to Investors. The letter is also available on SEDAR at www.sedar.com and on SWEF Terrawinds' website at www.sweflp.com.
As previously disclosed, on December 28, 2007, the predecessor to SWEF Terrawinds sold its wind park assets pursuant to a transaction approved by Investors at a special meeting held on the same date. At the special meeting Investors also approved a cash distribution and wind-up plan of SWEF Terrawinds and related entities. In 2008, following the completion of the sale of the wind park assets, SWEF Terrawinds made two cash distributions to Investors from the proceeds of the sale. The first distribution was $40,750,014 in aggregate or $5.28 per Share and the second distribution was $5,000,000 in aggregate or $0.65 per Share. Also in 2008, SWEF Terrawinds entered into an agreement with Terida Inc. (the "Payment Agent"), pursuant to which $24,490,826 was deposited with the Payment Agent to be held in trust to fund tax indemnity claims by Investors. As at December 31, 2013, Investors who submitted qualifying claims have received payments from the tax indemnity fund totaling approximately $14.6 million.
Additional information concerning SWEF Terrawinds, including information concerning the tax indemnity claims process, is available at www.sweflp.com. For inquiries regarding the tax indemnity process Investors may also contact the Payment Agent by phone: at 866-647-7520 (Toll Free Help Line), or 647-477-3497 (Toronto Help Line), by email at: PaymentAgent@terida.com and through its web site at: http://www.terida.com/PaymentAgent.
Forward Looking Statements
This press release contains forward looking information within the meaning of applicable securities laws, including forward looking information relating to: the expected timing of the redemption of the Shares; and the amount per Share that Investors are expected to receive upon the redemption. All forward looking statements are inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward looking statements. We consider the assumptions on which these forward looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. These forward looking statements involve a number of risks, uncertainties and assumptions, including the risk of future tax assessments, litigation or other unanticipated expenses.
SWEF Terrawinds disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events or otherwise, except as required by law. These risks may cause the actual results, performance or achievements of SWEF Terrawinds to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. These cautionary statements expressly qualify all forward looking statements attributable to SWEF Terrawinds.
SOURCE: SWEF TERRAWINDS RESOURCES CORP.
For further information:
please contact Judson Martin, Chairman of SWEF Terrawinds, by email at Judsonmartin@sweflp.com or by facsimile at 416-352-5728.