Confederation unit's creditors approve settlement

Article Abstract:

Confederation Treasury Services Ltd.'s (CTSL) creditors, which includes holders of derivatives and Eurobonds, approved a settlement worth around C$740 million. The deal settles outstanding litigation between insurer Confederation Life Insurance Co.'s Canadian and US liquidators and creditors of its investment unit, CTSL, which got into the risky business of currency and interest rates derivatives. The settlement calls for the creditors group to receive C$370 million or 70 cents on the dollar, with the US liquidator getting an equal amount. CTSL encountered a barrage of legal suits after it had swept over C$600 million out of a Michigan trust fund set up to protect US policyholders, replacing it with IOUs in the form of promissory notes.

Comment:

Creditors approve settlement that fixes outstanding litigation between Confederation Life Insurance's Canadian & US liquidators

Legal issues & crime, Article, Confederation Treasury Services Ltd.

Income Financial Trust raises $90-million in IPO

Article Abstract:

Income Financial Trust has generated C$90 million in an IPO of trust units and is planning to invest the proceeds in a diverse group of Canadian and US financial services firms. The company plans to offer an annual yield of 8.5% on the units, more than the existing return on long-term Canada brands. Income Financial intends to invest in companies belonging to the TSE Financial Services Index, S&P Financials Index or the S&P MidCap Financial Index.

Organizational history, Income Financial Trust

Royal Energy rides oil and gas wave

Article Abstract:

The Royal Bank of Canada's Royal Energy Fund has boosted its exposure to energy producers and oil field services companies. Around 83% of the portfolio was invested in oil and gas producers as of June 30, 1999, after reducing exposure to integrated oils. The shift in portfolio strategy was due to the surging prices of crude oil and strong natural gas prices. The fund was up by 39.3% for the eight-month period ended Aug 31, 1999.

Financial analysis, Royal Bank of Canada