More than four years after the asset-backed commercial paper crisis gripped Canadian credit markets, the company at the heart of the mess is set to disappear.
Coventree Inc., which built much of the debt that went into default, is going to begin winding up in about three weeks. On Feb. 15, the company's board of directors will resign and a liquidator will take over. The company will take any last claims, then distribute any remaining cash to shareholders.
The winding up of Coventree leaves only a few loose ends in the ABCP mess.
Coventree has decided to stop fighting regulators, but some of its executives have not.
Geoffrey Cornish and Dean Tai, two of the men involved in Coventree, both plan to personally appeal an Ontario Securities Commission finding that they broke securities laws. The company said in a release that is indemnifying Mr. Cornish and supporting his appeal, but not Mr. Tai.
Coventree said that it's taking steps to recover $1.6-million that it says the company is owed by Mr. Tai's companies, including selling shares that were pledged as collateral.
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