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Coventree Announces Further Workforce Reductions as Part of Wind Down Process

^{Published on 2009-05-21 08:11:08, Last Modified on 2009-05-21 08:12:10 - Market Wire}
 

 Toronto Stock Exchange Symbol: COF TORONTO, May 21 /CNW/ - Coventree Inc. (TSX: COF) ("Coventree" or the "Company") today announced further planned workforce reductions as part of the continuing orderly wind down of its operations. As previously disclosed, as part of these reductions, Bridget Child is departing as Chief Financial Officer, David Allan is departing as Head of Capital Markets, and Doug Onofrychuk is departing as Head of Administration, effective immediately. With these workforce reductions, Coventree currently has four full-time employees. "On behalf of the Board, I want to thank Bridget, David and Doug for their contributions to Coventree," said Brendan Calder, Chair of the Board of Coventree. "All three have been valued members of the Coventree leadership team and played important roles in helping the Company deal with the effects of the ABCP market disruption for the benefit of Coventree and its stakeholders. Bridget worked tirelessly to address the changing and complex accounting landscape that Coventree faced during the seven years that she was at Coventree. David's leadership during the ABCP market disruption and subsequent restructuring was invaluable. Doug played a critical role in leading the Administration business unit through the many challenges it faced during the market disruption and subsequent restructuring. We wish them all the best in the future." The Company expects that, as a result of the departure of these and other employees, it will pay an aggregate of approximately $4.5 million in severance, termination and other costs in its third quarter ending June 30, 2009. Approximately $3.7 million of this amount was included in the restructuring activities charge recorded by the Company during the fourth quarter of fiscal 2008. It is expected that the remaining $0.8 million will be recorded as an expense in the Company's third quarter ending June 30, 2009. Coventree's Board of Directors appointed Ani Hotoyan-Joly as the new Chief Financial Officer. Mrs. Hotoyan-Joly is a Chartered Accountant and has worked at Coventree for approximately four years. Prior to joining Coventree, she was Vice President and Chief Financial Officer of Swiss Reinsurance Company Canada. Forward-Looking Statements -------------------------- This press release includes a forward-looking statement relating to the Company's expectation relating to the termination and other costs to be paid in connection with the workforce reductions described above. This statement can be identified by the expression "expects". This forward-looking statement is not a historical fact but reflects Coventree's current expectations regarding future events based on information currently available to Coventree. This forward-looking statement is subject to a number of known and unknown risks, uncertainties and assumptions. Many of these risks and uncertainties could cause Coventree to vary the cost to be paid in connection with the work force reductions described above. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statement prove incorrect, the Company may vary the cost to be paid in connection with the work force reductions described above. These factors should be considered carefully and prospective investors should not place undue reliance on this forward-looking statement. This forward-looking statement is made as of the date of this press release and Coventree does not intend, and does not assume any obligation, to update or revise it, except as required by law. 

For further information: Craig Armitage, The Equicom Group Inc., Tel: (416) 815-0700 x278, Email: [ carmitage@equicomgroup.com ]