Business
Badger Income Fund Announces Proposed Conversion to a Corporation
Badger Income Fund Announces Proposed Conversion to a Corporation
About this update from Badger Infrastructure Solutions Ltd
[{"type":"text","content":"\nBadger Income Fund Announces Proposed Conversion to a Corporation\n\n\n Mar. 19, 2010 (Filing Services Canada) -- Badger Income Fund (BAD.UN - TSX), announces its intention to convert to a growth-oriented corporation (the \"Conversion\") pursuant to a plan of arrangement (\"Arrangement\") under the Business Corporations Act (Alberta). At its Annual and Special Meeting Badger will request approval from unitholders to complete the Conversion effective no later than January 2011.  Badger will schedule a second Special Meeting of unitholders to re-approve the Conversion plan if there is a material change in business conditions before Conversion or if Badger proposes Conversion before 2011 because of acquisition or merger opportunities that change the approved Badger Conversion proposal.Management and the Trustees believe the rationale and benefits for the Conversion are as follows:* Badger believes the Conversion is important for future attraction and  retention of investors;* It will remove the Fund from the uncertainty that exists in the income  trust marketplace regarding Conversion to a corporation;* Access to capital markets for income trusts may become more limited in  2010;* The Fund anticipates efficiencies and cost savings from presenting the  Conversion for approval of the unitholders at it's regularly scheduled  annual general meeting;* The Conversion removes the restriction on non-resident ownership;* It will provide for a tax deferred rollover for unitholders of the Fund  and for the Fund itself;* On October 31, 2006 the Canadian Minister of Finance announced the  Specified Investment Flow Through Trust (\"SIFT\") income and  distribution tax which effectively eliminated the benefits of Badger's  income trust structure by introducing additional income taxes to be  imposed on trusts (generally) for taxations years commencing January 1,  2011;* The Conversion removes the growth limitations imposed by the SIFT  legislation; and* It will lead to a simplified and more efficient corporate structure  that will reduce overhead and administrative costs.After the Conversion Badger anticipates it will become a dividend paying corporation.  The basic plan looking forward from today ...