The Plight of the Income Trust
Keller-Hobson, Kathleen L.
March 8, 2010 - Much has been written about the plight of the Canadian income trust. At the height of the income trust boom in 2006, there were more than 250 publicly-traded income trusts in Canada with a total market capitalization of in excess of $200 billion. Adverse tax changes, market meltdown and economic recession have all contributed to the precarious situation in which many income trusts have found themselves and all income trusts face difficult decisions as to the future, including whether or not to convert to a corporation. Published in the March 2010 edition of The Negotiator, the magazine of the Canadian Association of Petroleum Landmen.
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Implementing an Income Trust Conversion
Keller-Hobson, Kathleen L.
December 1, 2009 - The mechanics and documentation required to convert an income trust to a corporation will vary depending upon whether the exchange method or distribution method is used to effect the conversion, as well as upon the structure of the income trust and its subsidiary entities and the terms of relevant contracts and other documents.
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Income Trust Conversion Options
Keller-Hobson, Kathleen L.
November 17, 2009 - Once an income trust has made the decision to convert to a corporation, two structural options are available under the tax rules providing for tax-deferred conversions: the exchange method and the distribution (or redemption) method. This update, discussing the reasons for selecting either method, is part of a series of brief updates on key issues and practical considerations for management, independent trustees, acquirors, financiers and other stakeholders with interests in income trusts.
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Income Trust Governance Considerations
Keller-Hobson, Kathleen L.
June 30, 2009 - It is critical that trustees of an income fund follow corporate governance best practices when considering whether or not to convert to a corporation. This update focuses on procedural and substantive considerations for trustees, including whether the establishment of a special committee of independent trustees is necessary or desirable.
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Income Trust Decision-Making Checklist
Keller-Hobson, Kathleen L.
June 16, 2009 - Further to our recent Market Update focusing on the tax deadlines faced by income trusts and the alternatives available, we present our Decision-Making Checklist. This update outlines key strategic, tax, financial, market and legal questions which management, trustees, advisors and other stakeholders in income trusts should ask in determining the best alternative.
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Income Trust Market Update
Keller-Hobson, Kathleen L.
June 2, 2009 - As the tax-free holiday on income distributed to unitholders of publicly-traded income trusts ends in 2011, management and trustees of income trusts must determine whether to convert to a corporation or pursue another strategy. This update, the first of a series on key issues and practical considerations for management, independent trustees, acquirors, financiers and other stakeholders with interests in income trusts, focuses on the deadlines faced by income trusts and the alternatives available.
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The Economic Plight of Warrantholders in Mergers
Keller-Hobson, Kathleen L.
December 3, 2007 - An examination of whether protections can be imbedded in the governing document for warrants in order to provide certainty to a warrantholder as to the economic result in the event of a merger, rather than the warrantholder having to consider litigation to defend its rights at the time of the merger. Published in Innovative Financing.
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