Noranda Income Fund Unit T.NIF.UN

RE: A one-off distribution?

[quest13]

They have called it a monthly distribution; but of course there are the usual weasel words.

I quote pieces "The board of trustees is pleased to announce this monthly distribution, the first such monthly distribution since June, 2009"

"With the current uncertainty surrounding the viability of the fund as it approaches the end of the SPA in 2017, the fund's capacity to make distributions may be negatively affected by the need to establish out of its available cash flows, cash reserves to meet its obligations at that time.

Mr. Swidler concluded by stating, "The board of trustees will need to determine if further distributions, including the amount of such distributions, if any, are warranted, taking into account the fund's performance, general economic conditions, including commodity prices, and the potential necessity of establishing post-SPA reserves."

I personally believe that further distributions will be warranted; but that is just my belief, and I have no knowledge.

As I stated in my recent posting I think the game of chicken is just getting underway from Xstrata's side. This is just a guess on my part but I believe Xstrata want a bargain basement price to take over the Plant - I base this opinion on the ridiculously low offer they made to buy out the priority uniholders before.