Contrans Income Fund will resume paying quarterly cash distributions, seven months after they were suspended due to the North American recession.
The Ontario-based fund, which owns a trucking business, announced Monday that it will pay a distribution of 44 cents per unit on Oct. 30.
Contrans announced in March that it would temporarily suspend quarterly distributions to preserve cash and announced in July the suspension would continue for a second consecutive quarter.
The fund, which announced in August it plans to convert to a dividend-paying corporation, announced Monday that its board of trustees remains committed to maintaining a strong balance sheet in order to cope with adversity and take advantage of opportunities.
"Accordingly, no distribution will be made if it would have a material adverse effect on the financial position of Contrans. In the view of the board of trustees of Contrans, the payment of the foregoing distribution is consistent with these principles," the fund said.
Contrans management currently estimates that the corporate dividend will be about 30 per cent of the free cash flow of the new corporation, paid quarterly and subject to the board's discretion.
This story clarifies an earlier versionReport Typo/Error