What is the Latest on the Come by Chance Refinery?
The Come by Chance Refinery was sold to Harvest Energy Trust a couple of months ago - and the deal was finalized just before the Federal Government announcement on major taxation changes for Income Trusts.
Harvest was hit very hard by the announcement and almost immediately began qualifying what they could do with the Come by Chance asset. Plans of expansion and refurbishment seemed to put on hold and even the funds used to make the purchase had to take a different route for financing.
The fall-out of the changes is not over - companies that were income trusts prior to the announced tax changes - have 4 years to adjust. Now reports say that these trusts are on the road to extinction - so what will happen to them?
This quote from a story in the Globe and Mail
"The other likely outcome for many trusts is being swallowed in a takeover, as private equity firms from the United States and abroad are drawing up lists of target companies and await only a further drop in prices before they strike."
So what will happen to Come By Chance and Harvest Trust - what are the possibilities? It is time the government and Williams gave an update on this situation and whether or not the future of this refinery has been placed in question by the federal government policy. Are we considering or have we been asked for some provincial incentives to compensate for the losses suffered by Harvest Trust?
Harvest was hit very hard by the announcement and almost immediately began qualifying what they could do with the Come by Chance asset. Plans of expansion and refurbishment seemed to put on hold and even the funds used to make the purchase had to take a different route for financing.
The fall-out of the changes is not over - companies that were income trusts prior to the announced tax changes - have 4 years to adjust. Now reports say that these trusts are on the road to extinction - so what will happen to them?
This quote from a story in the Globe and Mail
"The other likely outcome for many trusts is being swallowed in a takeover, as private equity firms from the United States and abroad are drawing up lists of target companies and await only a further drop in prices before they strike."
So what will happen to Come By Chance and Harvest Trust - what are the possibilities? It is time the government and Williams gave an update on this situation and whether or not the future of this refinery has been placed in question by the federal government policy. Are we considering or have we been asked for some provincial incentives to compensate for the losses suffered by Harvest Trust?
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