Peyto Energy Trust Announces Proposed Internal Reorganization and Confirms Cash Distributions for December 14, 2007

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[{"type":"text","content":"\n\n\n\nTSX SYMBOL: PEY.UN\n\n\nCALGARY, Nov. 13 /CNW/ - Peyto Energy Trust ("Peyto" or the "Trust")\ntoday confirms the cash distributions for December 2007 and announces a\nSpecial Meeting of Unitholders will be held on December 14, 2007, to consider\na proposed internal reorganization.\n\n\nSpecial Meeting\n\n\nA Special Meeting of Unitholders will be held on December 14, 2007 at\n2:30 p.m. in Room 16-1, at the offices of Burnet, Duckworth & Palmer LLP,\nSuite 1400, 350-7th Avenue SW, Calgary, Alberta, Canada. The Record Date for\nthe determination of those Unitholders entitled to receive notice of, and vote\nat the meeting is November 13, 2007.\n\n\nAt the Special Meeting, Unitholders will be asked to provide conditional\napproval of an internal reorganization of the Trust and its subsidiaries. The\ninternal reorganization does not involve the acquisition of any additional\ninterests in any operating assets or the disposition of any of the Trust's\nexisting interests in operating assets. Following completion of the\nreorganization, the Unitholders will continue to hold units and the Trust will\ncontinue to own, directly and indirectly, the same proportionate interests in\nthe operating assets that it held immediately prior thereto. As a result of\nthe internal reorganization Unitholders should generally not recognize any\nincome, gain or loss for Canadian or United States income tax purposes.\n\n\nThe reorganization, if completed, would result in the existing business\nof the Trust, which is currently carried on through a combination of Peyto\nExploration & Development Corp. and Peyto Operating Trust, being carried on\nentirely through a limited partnership indirectly owned by the Trust. The\nreorganization, which is similar in substance to reorganizations completed by\na number of other income trusts, will provide the Trust with a "flow through"\nstructure that should maximize the cash available for distribution. The\nreorganization is also subject to certain regulatory and third-party approvals\nand follows an advance tax ruling received from the Canada Revenue Agency.\n\n\nFor Unitholders, the reorganization will not result in a change to the\nnumber, type and ownership of the outstanding units of the Trust nor will it\nchange the monthly distribution paid out to Unitholders. A detail...

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