Connor, Clark & Lunn Capital Markets have advised:
ROC Pref III Corp. ( the “Company”) announced today that the preferred share dividend will remain suspended and will not resume for the quarter ending September 30th 2009. Connor, Clark & Lunn Capital Markets Inc. (the “Manager”) and Connor Clark & Lunn Investment Management Ltd. ( the “Investment Manager”) have taken this action in order to have the funds available for potential use, if necessary, as part of a restructuring plan for the Company that the Manager and Investment Manager are currently working on in conjunction with the independent members of the Board of Directors.
Given the events of the credit market over the past year and the credit events that have occurred in the underlying portfolio, the Manager and Investment Manager believe that a restructuring may be necessary in order to preserve the maximum value available to preferred shareholders. The funds that would have been used to pay the dividend will remain in the Company.
The Company expects to be in a position to announce a restructuring plan during the fourth quarter of 2009, but if it is not able to do so then the decision whether to pay the dividend will be reviewed on a quarterly basis.
Note that this structured investment has no capital units; the “preferred” is considered by some (e.g., S&P, the TSX and the issuer) to be appropriate since there is subordination in the underlying investment.
RPB.PR.A was last mentioned on PrefBlog when the Lear credit event nudged it closer to default. RPB.PR.A is not tracked by HIMIPref™.
[…] was last mentioned on PrefBlog when the reorganization idea was floated. RPB.PR.A is not tracked by HIMIPref™. ROC Pref III Corp. is listed for trading on the […]