BSD.PR.A Mails Extraordinary Motion Paperwork

Brascan Soundvest Rising Distribution Split Trust has released via SEDAR the materials for the Extraordinary Meeting of Capital Unitholders previously reported on PrefBlog.

Sadly, it appears that no material change in the management of the fund can be expected – it is merely a name change and ownership shuffle. It appears that Kevin Charlebois, who has presided over the appallingly poor performance of the trust since inception, will continue his endeavors.

Two elements of the reorganization not previously reported are:

(b) removing the fixed termination date for the Fund, which is currently set at March 31, 2015;

(c) permitting the Manager, in its sole discretion, to wind-up the Fund should the net asset value (“NAV”) of the Fund fall below $15 million, subject to compliance with the trust indenture between the Fund and CIBC Mellon Trust Company dated March 16, 2005 governing the 6% Preferred Securities (the “Trust Indenture”);

The second of those items is of great interest since:

The Fund was launched in 2005 with a mandate to deliver a stable stream of monthly distributions and to maximize long-term total return. As of March 12, 2010, the Fund had 5,662,643 Units and 5,662,643 Preferred Securities outstanding, and its total NAV was $17,211,757 or $3.04 per Unit. The Fund’s Units closed at $2.36 on the TSX on March 12, 2010.

While the manager’s abuse of discretion in suspending the annual retraction does not provide a lot of hope that they will exercise their discretion to shut down the fund in the event of continued poor performance, the availability of that discretion must be considered a Good Thing.

One Response to “BSD.PR.A Mails Extraordinary Motion Paperwork”

  1. […] was last mentioned on PrefBlog when the extraordinary resolution paperwork was mailed. BSD.PR.A is tracked by HIMIPref™, but is relegated to the Scraps index on credit […]

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