TORONTO: The Board of Directors of Canadian Income Management CIM Limited, the administrator of Canadian Income Management Trust (the “Trust”), announces that it has suspended its monthly distribution payment to unitholders until further notice, commencing with the suspension of distribution payment to unitholders of record of the Trust as of December 29, 2006. This announcement is the result of a decision by the Board of Directors of Canadian Income Management Inc. (the “Corporation”), in its capacity as general partner of Canadian Income Management LP (the “Partnership”), that it will not be making the December 29, 2006 payment on the residual units of the Partnership (99% of which are held by the Trust) until further notice, due to current market conditions and the Corporation’s obligations in respect of the debentures.
The Board of Directors of the Trust also announces that the Trust will not be making payment of distributions for the period of July 1, 2006 to September 30, 2006.
The Board of Directors of the Corporation, in its capacity as general partner of Canadian Income Management LP (the “Partnership”), announces that, effective January 1, 2007, the management fees payable to Pro-Vest Management Inc. for management services provided to the Partnership under the terms of the Partnership Management Agreement, dated February 21, 2006, have been suspended until further notice.
These prudent measures have been taken in order to enhance the net asset value of the Trust and preserve the integrity of the debentures. The Board of Directors of the Trust and the Corporation will review future distribution policy and management fee payments on a quarterly basis, beginning March 31, 2007, to ensure consideration the best interests of unitholders and debentureholders.
Canadian Income Management: The investment objectives of the Corporation are (i) to provide debentureholders with semi-annual interest payments at a rate of 7% per annum, and (ii) to preserve and potentially enhance the value of the portfolio in order to repay the debentures at maturity.The investment objectives of the Trust are (i) to provide cash distributions, and (ii) to preserve and potentially enhance the value of the portfolio.
More information: Investor Services (broker/investor inquiries) or Kevin Cohen (General Counsel) Tel: 1-888-246-6656 Fax: 416-364-1197
This news release contains forward-looking statements that involve risks and uncertainties. These statements reflect Sentry Select’s current expectations, but are subject to a number of risks and uncertainties. Due to the many risks and uncertainties, Sentry Select cannot assure that the forward-looking statements contained in this news release will be realized.
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