What fresh hell is this ? - Dorothy Parker
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Provident Energy Trust Announces Requirement for Residency Declarations
Monday June 16, 12:47 pm ET
CALGARY, Alberta--(BUSINESS WIRE)--June 16, 2003--Provident Energy Trust ("Provident") (AMEX:PVX - News; TSX:PVE.UN - News) in consultation with its trustee, registrar and transfer agent Computershare Trust Company of Canada ("Computershare") has become aware that the percentage of its outstanding units ("Units") held by persons that are not residents of Canada has increased significantly over the last 3 months. Pursuant to the trust indenture governing Provident (the "Trust Indenture") persons who are not residents of Canada may not hold more than one half of the outstanding Units.
This restriction is contained in the Trust Indenture as part of ensuring that Provident qualifies as a Mutual Fund Trust under the Income Tax Act, Canada. While Provident has been advised by its tax advisors that given its current structure and current assets there is little risk at this time of Provident losing its Mutual Fund Trust status, Provident believes that it is important for Computershare, as trustee of Provident to comply with the Trust Indenture to ensure that any risk of Provident losing its Mutual Fund Trust status is eliminated and in order to ensure that Provident retain maximum flexibility in its ability to acquire assets and effectively execute its business plan.
Provident has recently been working with Computershare to estimate the percentage of Units held by persons who are not residents of Canada based on the addresses of registered holders and of participants under the Canadian Depository For Securities Limited ("CDS") and the Depository Trust Company ("DTC") systems. Based on the information obtained from these estimates, Provident has initiated a process with Computershare, CDS and DTC that will require all holders of Units and all transferees of Units to execute residency declarations. Provident expects to have an estimate of the percentage of Units held by persons who are not residents of Canada based on these residency declarations within the next few weeks.
Pursuant to the Trust Indenture, if Computershare, as trustee of Provident, becomes aware that the beneficial owners of 49% of the Units outstanding are, or may not be, residents of Canada, or that such a situation is imminent, Computershare shall not, and shall instruct CDS and DTC not to, register a transfer of Units to a person unless the person provides a residency declaration confirming Canadian residency. Provident believes that if non-residents continue to acquire Units as they have in the past few months Computershare, as trustee of Provident will have to impose these restrictions shortly.
The effect of imposing these restrictions will be to prohibit the transfer of Units to persons who are not residents of Canada until such time as Computershare and Provident are satisfied that the percentage of Units held by non-residents is in compliance with the Trust Indenture. Such action will also result in the trading of the Units on the AMEX being halted. In such circumstance the Units will continue to trade on the TSX and non-residents of Canada shall continue to be able to sell their Units on that exchange.
In the event that more than half of the Units outstanding are held by persons who are not residents of Canada the Trustee is also entitled under the Trust Indenture to require holder of Units who are not residents of Canada (chosen on the basis of the inverse order to the order of acquisition or registration, or such other manner as is considered to be equitable and practical) to sell their Units or a portion of their Units within a specified period of not less than 60 days. If such Units are not sold within such period the Trustee has the right to withhold voting rights and distributions and sell such Units on behalf of such holder.
Computershare and Provident may impose these trading and transfer restrictions from time to time in order to ensure compliance with the residency requirements of the Trust Indenture.
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Contact:
Provident Energy Trust
Thomas Buchanan, 403/296-2232
or
Provident Energy Trust
Randall J. Findlay, 403/781-5343
or
Provident Energy Trust
Mark N. Walker, 403/781-5305
or
Provident Energy Trust
Corporate Head Office, 403/296-2233
or Toll Free: 800/587-6299
Fax: 403/261-6696
Email: info@providentenergy.com
Website: www.providentenergy.com |
