True plans to convert

Article Excerpt

TRUE ENERGY TRUST $0.84 (Toronto symbol TUI.UN; SI Rating: Speculative) (403-264-8875;; Units outstanding: 78.5 million; Market cap: $65.9 million) plans to convert itself into a conventional corporation by late October. The trust’s long-term debt now stands at $110 million. That’s still a high 166.9% of its market cap. But the trust reported cash flow of $10.5 million, or $0.14 a unit, in the latest quarter. This will let it keep paying down debt while maintaining production. True suspended its monthly distributions earlier this year because of falling energy prices and difficult credit markets, so the conversion won’t affect its payout to unitholders. True Energy is still a hold. hold…

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