Business
Peyto Energy Trust announces completion of internal reorganization
SYMBOL: PEY.UN - TSX CALGARY, Jan. 2 /CNW/ - Peyto Energy Trust ("Peyto" or the "Trust") is pleas...
About this update from Peyto Exploration & Development Corp.
[{"type":"text","content":"\n\n\n\nSYMBOL: PEY.UN - TSX\n\n\nCALGARY, Jan. 2 /CNW/ - Peyto Energy Trust ("Peyto" or the "Trust") is\npleased to announce the completion of its previously announced internal\nreorganization. The reorganization was approved by Peyto's unitholders\n("Unitholders") at a special meeting held on December 14, 2007 and was\ncompleted on January 1, 2008. Pursuant to the Reorganization the Trust's\nbusiness operations were simplified and consolidated, such that all assets and\nall exploration and development activities will now be conducted entirely\nthrough the new limited partnership, indirectly held by the Trust.\n\n\nPursuant to the reorganization and certain related post-reorganization\ntransactions, all Unitholders of record on January 1, 2008, will receive a\nspecial distribution in the form of securities of the Trust and its\naffiliates. The composition of this "distribution in kind" will depend on the\nresidency status of each Unitholder. The securities issued will then be\nautomatically redeemed and consolidated pursuant to the reorganization such\nthat Unitholders' interest will be represented by the same number of Units as\nthe Unitholder had prior to the reorganization. The securities issued pursuant\nto the special distribution will not be reflected in any confirmations or\nstatements received by a Unitholder from such Unitholder's broker. A\nwithholding tax on the special distribution is required by the Income Tax Act\n(Canada) to be remitted to the Receiver General on behalf of non-resident\nUnitholders. Canadian Unitholders will receive a special cash distribution\nthat will be equivalent to the withholding tax being remitted on behalf of\nnon-resident Unitholders. This special cash distribution will equate to\napproximately $0.0035 per trust unit, will be paid concurrently with the\nJanuary 15, 2008 distribution and will be classified as a return of capital\nfor tax purposes. Canadian Unitholders will be required to reduce the adjusted\ncost base of the Unitholder's units by the fair market value of the special\ncash distribution.\n\n\nFor Unitholders, the reorganization has not resulted in a change to the\nnumber, type and ownership of the outstanding units of the Trust. In addition,\nthere has been no impact on the daily operations of the Trust.\n\n\nPeyto is a natural gas w...